German Economy Minister Aims to Support Volkswagen Amid Cost-Cutting Challenges

German Economy Minister Robert Habeck has expressed his intention to assist Volkswagen in navigating its cost-cutting phase without resorting to site closures. This comes amid negotiations with unions over wage agreements and potential plant shutdowns. Habeck emphasizes the government's role in improving the market framework for electric vehicles.

German Economy Minister Robert Habeck stated on Friday his desire to help Volkswagen navigate a period of cost-cutting without closing sites. This reflects concerns surrounding Germany's largest carmaker.

During a visit to Volkswagen's Emden factory, Habeck emphasized maintaining personnel policy within the collective bargaining framework. His comments come as Volkswagen prepares for heated wage talks with unions, raising global industry concerns. While supportive, Habeck noted that structural changes are Volkswagen's responsibility, with politicians only improving market signals, notably for electric vehicle incentives.

Amid deteriorating industry conditions, with BMW and Mercedes-Benz cutting outlooks, Habeck plans a Monday virtual meeting with industry leaders to bolster Germany's electric vehicle market status. The government is closely monitoring Volkswagen, which employs 300,000 people in Europe's largest economy.

(With inputs from agencies.)