Robert Habeck, Germany’s economy minister, said on Friday that he wants to help Volkswagen get through a period of cost-cutting without the need for factory closures. This statement clearly shows the government’s concerns about the country’s biggest regarding the situation of its car manufacturer.


During his visit to the Volkswagen factory in Emden, Habeck emphasized that he wants to ensure that personnel decisions remain within the scope of the collective bargaining agreement. The management of Volkswagen faces tense negotiations with the unions in the coming period regarding new wage agreements and the possibility of factory closures in Germany. News of the possible closures has rocked the global auto industry.

At the same time, the Minister of Economy admitted that there are limits to the government’s support. He pointed out that the functionality and structure of the company basically depends on the company’s own decisions.

“Volkswagen has to solve most of the tasks,” the minister told reporters. This is the company’s responsibility. Politicians can help to the extent that they improve the regulatory framework and create appropriate market incentives” – for example by supporting the transition to electric cars.

Habeck mentioned that the goal is for Germany to be a leader in the electric vehicle market amid deteriorating industry conditions.

The spokesperson of the Ministry of Economy said that these negotiations will take place online, and that in addition to car manufacturers, suppliers will also participate in the discussions. The German government is monitoring Volkswagen’s situation, as the company employs around 300,000 people in Europe’s largest economy.