Germany's government is exploring options to support Volkswagen, according to German Economy Minister and Vice-Chancellor Robert Habeck, who spoke on Thursday in response to concerns about potential job cuts at the country's largest automaker.
Volkswagen recently announced the need for significant cost reductions at its German operations, attributing the decision to high costs, low productivity, and intense competition. "VW is of central importance to Germany," Habeck stated to reporters. The minister is scheduled to visit a VW plant in Emden on Friday.
Habeck refrained from commenting on a report in the German monthly "manager magazin," which suggested that the company might need to reduce its German workforce by 30,000 over the mid-term, equivalent to about 10% of Volkswagen Group's total German workforce. The report did not provide sources. A spokesman for the carmaker's works council dismissed the figure as "completely unfounded and utter nonsense," noting that it has been frequently mentioned in discussions about potential job cuts at Volkswagen in Germany.
Negotiations between management and unions are set to commence next week regarding the replacement of long-standing wage agreements that Volkswagen cancelled earlier this month, along with the threat of closing plants in Germany for the first time in history.
