EMDEN, Germany, (Reuters) – German Economy Minister Robert Habeck said on Friday that he wants to help Volkswagen get through a period of cost-cutting without having to resort to site closures, reflecting concerns about the country’s biggest carmaker.
During a visit to the Volkswagen’s factory in Emden, Germany, the minister said he also wants to ensure that personnel policy measures remain within the normal collective bargaining framework.
Habeck’s comments come as Volkswagen’s management is set to enter heated talks with powerful unions over new wage agreements and possible plant closures in Germany, considerations that have sent shockwaves through the global car industry.
Habeck said there were limits to what his government could do to support Volkswagen, adding that the structure and viability of the business was down to company policy.
“A large part of the tasks have to be dealt with by Volkswagen itself,” he told reporters. “This is the company’s job.”
Politicians could help by improving the framework and sending the right market signals, the minister said, adding that this included incentivising the switch to electric motors.
In a sign of deteriorating conditions in the industry, with both BMW and Mercedes-Benz cutting outlooks over the past ten days, Habeck will talk with senior executives and industry representatives on Monday.
A spokesperson for the Economy Ministry said this would be a virtual exchange with carmakers and suppliers, with the aim being to make Germany a leading market for electric vehicles.
Germany’s government is currently closely watching the situation at Volkswagen, which employs around 300,000 people in Europe’s top economy, and that it was in talks with all sides.
Reporting by Markus Wacket and Christian Kraemer, Christina Amann and Christoph Steitz; Writing by Rachel More; Editing by Miranda Murray and Louise Heavens
