The German government is considering measures to support Volkswagen, announced Thursday the vice-chancellor and Minister of Economy, Robert Habeck, when he was asked about the issue of layoffs at the country’s largest car manufacturer.
right ReutersVolkswagen would receive help from Germany, in the context in which it is encountering more and more problems. Volkswagen Group said this month it needed to significantly cut costs at the German brand, citing high costs, low productivity and fierce competition.
“Volkswagen is of key importance for Germany,” Habeck told reporters. The minister will visit a Volkswagen factory in the German city of Emden. Government sources say that the Ministry of Economy is analyzing solutions to remedy weak sales of electric vehicles.
Volkswagen could get help from the German government
Habeck declined to comment on a report in German monthly Manager Magazin which said some insiders estimated the group’s German workforce would have to cut 30,000 jobs in the medium term, or about 10% from the Volkswagen Group’s German workforce.
That number, which has been frequently cited in connection with potential job cuts at Volkswagen in Germany, “has no basis and is simply nonsense,” a spokesman for the automaker’s works council said .
Management and unions will begin negotiations next week to replace long-standing wage deals that Volkswagen scrapped this month following threats to close factories in Germany for the first time. Thus, for the first time in its 87-year history, the manufacturer could close factories in Germany, which raised concerns. In addition, Volkswagen announced that it will abandon a number of labor agreements, including job guarantees until 2029, at six plants in Germany, raising the issue of impending layoffs.
Source: www.promotor.ro
