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Volkswagen supervisory board to meet on Friday: Lower Saxony PM

Published 11/03/2016, 05:03 AM
Updated 11/03/2016, 05:10 AM
© Reuters.  Volkswagen supervisory board to meet on Friday: Lower Saxony PM
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HAMBURG (Reuters) - Volkswagen's (DE:VOWG_p) supervisory board will meet on Friday to discuss restructuring of the carmaker, the premier of the German state of Lower Saxony, VW's second-biggest shareholder, confirmed.

"As is known, there are currently talks between management and the works council about a future pact," Stephan Weil told journalists at an event late on Wednesday, adding the talks were still ongoing.

Management and labor leaders are seeking to agree on cost cuts and investments that will form part of the German carmaker's efforts to revive its fortunes more than a year after the diesel emissions scandal broke.

Two sources close to the board had told Reuters on Wednesday that an extraordinary meeting of the supervisory board had become necessary because of the sheer number of issues facing the 20-member panel on Nov. 18, when it is scheduled to ratify spending plans for the multi-brand group through 2021.

Lower Saxony's Weil indicated that Friday's meeting was unlikely to yield decisions. "Not too much should be expected from this next meeting," he said.

Europe's largest carmaker is under pressure to make cuts at high-cost operations in Germany to help to pay for a shift to electric cars and autonomous driving while still dealing with billions of euros in costs for the emissions scandal.

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