German Economy Minister Robert Habeck has called on Volkswagen to avoid closing its plants.
During a visit to Volkswagen’s factory in Emden, Lower Saxony, Habeck emphasized that all efforts should focus on keeping the production sites operational. This was reported by the DPA news agency.
Cost-cutting measures shouldn’t come at the expense of employees or jeopardize manufacturing sites, Habeck added. Volkswagen is struggling with high costs at its flagship brand and recently terminated a long-standing agreement guaranteeing jobs. The company has not ruled out closing some of its German plants, which has sparked strong opposition from the employee council and the country’s largest trade union, IG Metall.
According to Manager Magazin, Volkswagen could eliminate up to 30,000 jobs in Germany in the medium term. The company has not commented on this report, while the employee council dismissed the number as unfounded and nonsensical.
Habeck also announced that due to the crisis in the industry, he will convene an “automotive summit” on Monday, September 23. Representatives from the German Association of the Automotive Industry (VDA), the IG Metall union, and major manufacturers and suppliers are expected to attend.
