German Economy Minister calls on Volkswagen to preserve its factories in Germany in the face of economic difficulties.
German Economy Minister Robert Habeck has issued an urgent appeal to Volkswagen to spare its production sites in Germany as the carmaker faces severe economic difficulties. During his visit to the Volkswagen plant in Emden, northwest Germany, the minister stressed the importance of maintaining the country’s industrial facilities: “We must preserve the sites”he pleaded.
Volkswagen caused concern in early September by announcing an unprecedented savings plan. Although the details of this plan have not yet been revealed, Factory closures in Germany, a first in the group’s history, cannot be ruled outLayoffs are also possible, putting an end to the group’s famous “job guarantee” in force for 30 years.
Germany does not rule out supporting Volkswagen
Although Robert Habeck, the Green minister and vice-chancellor of the government led by Olaf Scholz, showed his support for Volkswagen, he nevertheless tempered expectations of massive state intervention. “The main problems will have to be solved by Volkswagen”he said. However, he assured that the government will look at ways to support the electric car market.
Since the Scholz government eliminated purchase subsidies for electric vehicles last December in order to reduce public spending, sales have dropped dramaticallyAware of the situation, the government recently introduced in September tax advantages and more favorable depreciation conditions for electric company vehicles, in order to revive the sector.
Volkswagen faces difficult choices
Volkswagen is to begin negotiations with employee representatives on September 25 regarding its austerity plan. Several rumors suggested the potential loss of 30,000 jobs in Germany in the medium termThis information has however been denied by the group as well as by the works council, although the climate of uncertainty persists.
Faced with this crisis, which affects not only Volkswagen but also all German automobile manufacturers and suppliers, Robert Habeck has planned to organize an online meeting with the main players in the sector this week.
The aim of this meeting will be to discuss the measures needed to address current challenges and support an automotive industry that is crucial to the German economy.
Source: www.autoplus.fr
