Germany Weighs Support for Volkswagen Amid Job Cuts Concerns

Germany's government is exploring ways to assist Volkswagen as the carmaker reveals plans to cut costs and respond to high expenses, low productivity, and intense competition. Economic Minister Robert Habeck stressed VW's significance to Germany, while the company's works council disputed rumors of large-scale job cuts.

Germany's government is examining potential methods to support Volkswagen, Economic Minister and Vice-Chancellor Robert Habeck announced Thursday, addressing concerns of looming job cuts at the nation's largest automaker.

Volkswagen recently declared a need to slash costs at its German brand, highlighting high operating expenses, low productivity, and stiff market competition. 'VW is of central importance to Germany,' Habeck told journalists, noting his plan to visit the automaker's Emden plant on Friday.

Habeck refrained from commenting on a report by German monthly 'manager magazin' suggesting a mid-term reduction of 30,000 jobs, a figure dismissed as unfounded by a Volkswagen works council spokesperson. Management and unions will commence talks next week to negotiate new wage agreements after Volkswagen's recent move to cancel existing ones and threaten plant closures in Germany.

(With inputs from agencies.)