2024-09-19 23:55:08
Automotive
Economy

Government Contemplates Support Amid Volkswagen Crisis

Image courtesy of : AFP (MORITZ FRANKENBERG)

In light of Volkswagen's challenging situation, the German federal government and the state of Lower Saxony are considering ways to support the automotive giant. Federal Minister for Economic Affairs Robert Habeck emphasized the importance of Volkswagen and the automotive sector during his visit to the VW plant in Emden, which is set to focus solely on electric vehicles.

However, the sales of electric cars have slowed down significantly since the government abruptly cut purchase incentives last year. This drop in sales has put the company under financial strain, prompting it to implement strict cost-cutting measures, including potential site closures and job cuts, possibly affecting up to 30,000 positions.

Habeck, alongside Lower Saxony’s Minister for Economic Affairs Olaf Lies, highlighted the necessity of political interventions to bolster the electric mobility market. To address the crisis, Habeck invited key stakeholders from the automotive industry to a summit, including representatives from the automotive association VDA and the trade union IG Metall.

The meeting aims to discuss the current market challenges and explore potential solutions to support the industry. As the second-largest shareholder in Volkswagen, Lower Saxony's leadership is particularly keen on preserving jobs and stabilizing the company.

The federal government is also considering stronger tax incentives for electric vehicles as part of its broader strategy to support the sector. The ongoing discussions reflect the critical role Volkswagen plays in the German economy and the urgent need for coordinated efforts to navigate the current industry upheavals.

AFP
19. September 2024 um 20:03

Habeck: Federal Government Considers Support for Volkswagen

Economy
Politics
Environment
Technology
In light of the situation at VW, the federal government and the state of Lower Saxony are considering support. Habeck emphasizes the importance of VW and electric mobility, visits the electric car plant in Emden, and invites the industry for a discussion. VW plans cost-cutting measures such as plant closures, job cuts, and forgoing billions in investments, which could cost up to 30,000 jobs. The company announces the termination of a collective agreement for job security.
gmx
19. September 2024 um 20:36

Habeck invites to car summit - traffic light coalition considers aid for VW

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Federal Minister of Economics Habeck invites the automotive industry to a summit; VW hopes for aid from Lower Saxony and the federal government; the crisis is also affecting suppliers like ZF with job cuts.
rp_online
19. September 2024 um 18:48

Car: Habeck Invites to Auto Summit - Concerns About Jobs at VW

Economy
Habeck invites the auto industry to a summit; the auto industry suffers from weak electric car sales; VW plans to cut up to 30,000 jobs; IG Metall is negotiating with VW; supplier ZF is cutting 14,000 jobs; VW is considering plant closures and layoffs for operational reasons; VW's CFO Antlitz is reducing investments; Lower Saxony is VW's second-largest shareholder; VW CEO Blume considers job cuts realistic; Ford is closing its plant in Saarlouis, and Audi's plant in Brussels and VW's Transparent..
CW

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