Germany is looking to support Volkswagen as the car giant faces significant restructuring to stay competitive. Economy Minister Robert Habeck emphasized that Volkswagen will need to solve most of its problems on its own to avoid factory closures. The announcement of potential site shutdowns in Germany has raised concerns about the country’s car industry, which is struggling with high costs, Chinese competition, and weak demand for electric vehicles (EVs).
Habeck stressed the importance of sending the right market signals to help the car sector, particularly in boosting demand for EVs. He mentioned plans for new tax breaks for electric company cars to encourage the transition away from fossil fuels. Sales of battery cars in Germany have suffered after government subsidies were phased out.
Mercedes-Benz and BMW have already adjusted their profit outlooks due to challenges in the Chinese market. Habeck will host a meeting with industry representatives and unions to address the sector’s difficulties. Overall, Germany is committed to supporting Volkswagen while urging the company to address its internal issues.