Germany’s government wants to keep the so-called “Volkswagen Law,” allowing the state of Lower Saxony a blocking minority of Europe’s largest carmaker.
Speaking to Volkswagen workers, Chancellor Angela Merkel said the government was convinced that the 48-year-‘old law does not affect the company’s competitiveness and said Berlin would fight to keep it in place:
“We have applied the European Court of Justice’s verdict, we have taken into account their decisions, but we continue to consider that at a time of important decision making in the company, the blocking minority must continue,” she told them.
Brussels is not alone in its opposition to the law. Porsche is the major shareholder, having accumulated some 35 percent of the firm. The company wants to buy out more of Volkswagen, but the blocking minority prevents it from doing this.
Lower Saxony state owns 20.3 percent, while German institutions own 2.29 percent. Other companies own the remaining 42.3 percent.
Volkswagen has revealed the latest version of its Golf. The Golf is a symbol for the success of the company, success that Lower Saxony puts down to its supervising of Volkswagen. The state’s premier, Christian Wulff has pushed for the federal government to protect his state’s role in the company, which employs nearly 150,000 people in Germany.
Earlier this month thousands of Volkswagen staff held a demonstration to support the law.