German Economy Minister Robert Habeck said that Berlin is looking into ways to support ailing carmaker Volkswagen amid the threat of job cuts. The firm has been grappling with weak electric vehicle sales.
Germany’s government is considering ways to support automaker Volkswagen (VW), Economy Minister Robert Habeck said on Thursday.
Habeck, who is also Germany’s vice chancellor, made the comments in response to a question about the threat of job cuts at the firm.
What did Habeck say about possible support for VW?
“VW is of central importance to Germany,” Habeck told reporters in the city of Papenburg in the state of Lower Saxony.
Habeck is scheduled to visit a VW plant in Emden, also in Lower Saxony, on Friday.
Government sources said that the Economy Ministry was considering how to address weak electric vehicle sales. Sales of electric vehicles collapsed after the government stopped subsidizing them.
The ministry said that automobile association VDA, the IG Metall Union, car manufacturers and suppliers will take part in a German car summit on Monday.
VW sees drop in net profit amid weak e-vehicle sales
VW reported a 14% drop in net profit in the first half of the year. The crisis has also affected the net profit of BMW, which fell by almost 15%, and Mercedes-Benz, which fell by almost 16%.
The carmaker has terminated its decades-old job security agreement with unions in Germany, and plant closures and layoffs are on the table.
Also on Thursday, VW denied a media report that it is planning to lay off up to 30,000 people.
