VW promised continuity as Lower Saxony set for new leader

HANOVER, Germany (Reuters) -The likely new leader of the German state of Lower Saxony on Tuesday promised continuity in the oversight of Volkswagen after Social Democrat Stephan Weil said he would stand down in May after 12 years as state premier and VW board member.

Lower Saxony has a major influence on Volkswagen, which is headquartered in the state, under a law that effectively gives it a blocking minority. Lower Saxony owns 11.8% of its shares and has 20% voting rights.

"The state will continue to take responsibility and I am happy to be able to be guided by the work that Stephan Weil has done on the supervisory board," said Economy Minister Olaf Lies, who is expected to win the support of his Social Democrats to take over as state premier.

Weil, who has a seat on the supervisory board, said he wanted Lies to succeed him as state premier. Typically, the premier also gets a seat on the board.

Weil, 66, said he was suffering from sleeping problems. He had said when he was re-elected as premier in 2022 that this would be his last term.

VW is cutting costs by reducing capacity and jobs. The employer of thousands of people in Lower Saxony, regional politicians have long fought for Europe's leading carmaker.

"It seems to be the time to cut back a bit," Weil told reporters.

Weil currently governs with the Greens in Lower Saxony, which has been a battleground state between the SPD and conservatives in recent years.

On the national level, the SPD is in talks with Friedrich Merz's conservatives to form a coalition. Elections in the regional state are due in autumn 2027.

(Reporting by Andreas RinkeWriting by Madeline ChambersEditing by Friederike Heine, Ludwig Burger and Barbara Lewis)