The German government is expected to pass legislation amending the Volkswagen Law before the summer. 

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more


According to German magazine Focus, the coalition government has agreed to back proposed changes that will be presented to the cabinet by the justice ministry in the next few weeks, and win the cabinet’s approval.


The changes would still allow Volkswagen’s workforce to veto any management decision to close a plant. The law would allow the state of Lower Saxony to retain its blocking minority, with a stake of just 20%.


The proposed amendment is a response to the fact that the existing Volkswagen Law was ruled as illegal by the European Court of Justice in October 2007. That law limits voting rights to a maximum of 20%, regardless of the number of shares held. Porsche currently owns over 30% shares and is expected to increase its shareholding to over 50% during 2008.


Porsche chief executive Wendelin Wiedeking and his deputy Holger Haerter have written to Germany’s justice minister Brigitte Zypries objecting to proposals.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Wiedeking wants to have full control over the company and any decisions about the location of future production.


“A new VW Law would hurt business conditions in Germany and massively damage our image in Europe and the world,” Porsche said in a statement.


According to AFP Wiedeking has said that there should be “no exceptional rules for VW” and that “Porsche deplores discrimination”. He has asked for common rules to apply to VW as they do to all other companies.