The Volkswagen Group's plan to split its three core businesses, including the main brand of the same name, was opposed, highlighting the constraints faced by CEO Oliver Bloom in reinventing Europe's largest car company. Lower Saxony Governor Olaf Riis stated on Tuesday that the state will block any attempt by Volkswagen to split these business segments. “The plan to split the core business of Volkswagen passenger cars, Volkswagen commercial vehicles and parts has not been approved. As long as I and the state government are in office, the spin-off cannot be implemented,” Leith said in the state legislature. Lower Saxony holds 20% of the popular vote and has two seats on the Supervisory Board. The state holds an effective veto minority interest for major decisions requiring the approval of more than 80% of shareholders. This warning points directly to the most sensitive aspect of Bloom's reform plan. Management is studying whether it is possible to build a more streamlined and more autonomous structure for the massive Volkswagen passenger car and parts business. Some investors believe that this move will strengthen the division of responsibilities, speed up decision-making efficiency, and more clearly determine which businesses can create value.

The Volkswagen Group's plan to split its three core businesses, including the main brand of the same name, was opposed, highlighting the constraints faced by CEO Oliver Bloom in reinventing Europe's largest car company. Lower Saxony Governor Olaf Riis stated on Tuesday that the state will block any attempt by Volkswagen to split these business segments. “The plan to split the core business of Volkswagen passenger cars, Volkswagen commercial vehicles and parts has not been approved. As long as I and the state government are in office, the spin-off cannot be implemented,” Leith said in the state legislature. Lower Saxony holds 20% of the popular vote and has two seats on the Supervisory Board. The state holds an effective veto minority interest for major decisions requiring the approval of more than 80% of shareholders. This warning points directly to the most sensitive aspect of Bloom's reform plan. Management is studying whether it is possible to build a more streamlined and more autonomous structure for the massive Volkswagen passenger car and parts business. Some investors believe that this move will strengthen the division of responsibilities, speed up decision-making efficiency, and more clearly determine which businesses can create value.