2024-09-21 00:38:24
German Economy Minister Robert Habeck said he wants to help carmaker Volkswagen get through a period of cost-cutting without having to resort to closing sites, Reuters reported.
During a visit to Volkswagen’s plant in the German city of Emden, the minister said he also wanted to ensure staffing measures remained within the normal framework of collective bargaining.
Earlier this month, the German carmaker announced that its plans now include major layoffs and plant closures as a previously announced €10 billion cost-cutting program is not delivering the desired results.
Habek pointed out that dealing with the current challenges is the responsibility of the company, but pointed out that it is possible that the government could help with a new program to stimulate the purchase of new electric cars, writes DPA.
“Volkswagen” has so far not closed its production facilities in Germany, and since 1988 there has been no such case in the whole world. Currently, nearly 300,000 people are employed in the company’s factories. According to media reports, nearly 30,000 people could be laid off, which the automaker denies.
In a sign of deteriorating conditions across the sector, BMW and Mercedes-Benz announced in recent days that they are reducing their sales forecasts.
In this regard, on Monday, September 23, Habek is expected to meet with senior managers and representatives of the industry. A spokesman for the German economy ministry said the aim of the talks will be to find a mechanism to make Germany a leading market for electric vehicles, BTA writes.