Union Investment, one of Germany's largest asset managers, warned Volkswagen in
a letter to the chairman that its credit rating could be downgraded to junk
unless the automaker implements substantial cost cuts and improves
profitability, the FT reports. The move escalates an internal standoff ahead of
a crucial supervisory board meeting on Friday over CEO Oliver Blume's
restructuring plan, which could eliminate up to 100,000 jobs in Germany and
close as many as four plants. Management and the supervisory board are
deadlocked; worker representatives and major shareholder Lower Saxony oppose the
plan.
