Germany’s government is considering ways to support automaker Volkswagen (VW), Economy Minister Robert Habeck said on Thursday.
Habeck, who is also Germany’s vice chancellor, made the comments in response to a question about the threat of job cuts at the firm.
What did Habeck say about possible support for VW?
“VW is of central importance to Germany,” Habeck told reporters in the city of Papenburg in the state of Lower Saxony.
Habeck visited a VW plant in Emden, also in Lower Saxony, on Friday.
Government sources said that the Economy Ministry was considering how to address weak electric vehicle sales. Sales of electric vehicles collapsed after the government stopped subsidizing them.
Speaking from Emden, Habeck said he wanted to help Volkswagen negotiate cost-cutting without site closures.
He said he wanted to ensure personnel policy measures remain within the normal collective bargaining framework. However, the minister said there were limits.
“A large part of the tasks have to be dealt with by Volkswagen itself,” he told reporters. “This is the company’s job.”
The ministry said that automobile association VDA, the IG Metall Union, car manufacturers and suppliers will take part in a German car summit on Monday.
VW sees drop in net profit amid weak e-vehicle sales
VW reported a 14% drop in net profit in the first half of the year. The crisis has also affected the net profit of BMW, which fell by almost 15%, and Mercedes-Benz, which fell by almost 16%.
The carmaker has terminated its decades-old job security agreement with unions in Germany, and plant closures and layoffs are on the table.
Also on Thursday, VW denied a media report that it is planning to lay off up to 30,000 people.
sdi/jsi (Reuters, dpa)
