Oliver Blume's decision to publicly challenge Volkswagen's sacred labour taboos is a necessary step toward saving the company. For years, VW has operated with costs far above its competitors, partly due to generous labour agreements that shielded German plants from restructuring. That model is no longer sustainable. With profit margins shrinking and the electric vehicle transition demanding huge investments, Blume has no choice but to break the old pacts.
Supporters argue that by floating plant closures, Blume is creating leverage to negotiate a more realistic labour deal. VW's German factories are among the most expensive in the world to run, and the company cannot keep subsidising them indefinitely. If VW fails to cut costs, it risks losing ground to Tesla, BYD, and other rivals that produce cheaper EVs. In that case, even more jobs could be lost in the long run.
The CEO's approach is also pragmatic. He has not announced immediate closures; instead, he is signalling the seriousness of the situation to unions and the government. This may push all sides to the table to find a compromise, such as early retirement programmes, reduced hours, or partial closures. In the past, similar crises at other German manufacturers like Siemens and Bosch have led to negotiated cutbacks without outright conflict.
From a business perspective, Blume is doing what any responsible leader would do: facing reality. The taboo against discussing plant closures was a luxury VW could afford in good times, but not now. Shareholders and investors have been demanding action, and Blume's bluntness has been welcomed by financial markets. If he succeeds in restructuring, VW can emerge leaner and more competitive, securing its future for decades.
Ultimately, breaking taboos is painful but often necessary. VW's workers will not like it, but the alternative—ignoring the crisis—would be far worse. Blume deserves support for having the courage to state the hard truth.