Germany Considers Support for VW Amid Job Threats

Germany’s government is exploring ways to assist automaker Volkswagen (VW) as job cuts loom, according to Economy Minister Robert Habeck. VW’s significance to Germany was stressed by Habeck during a visit to a VW plant in Emden, Lower Saxony.

Possible Support Measures for VW

The Economy Ministry is assessing strategies to address the decline in electric vehicle sales following the government’s subsidy cessation. Habeck aims to aid Volkswagen in cost-cutting negotiations without plant closures, while emphasizing that certain responsibilities fall on the company.

Concerns Over Profit Decline and Job Security

VW’s reported 14% net profit decrease in the first half of the year has raised concerns. The carmaker’s move to end its job security agreement with unions has raised fears of plant closures and layoffs. VW has refuted reports suggesting massive layoffs.

Various stakeholders are set to participate in a German car summit to address industry challenges collectively, as the auto sector faces significant headwinds in the current economic landscape.

References: Reuters, dpa