Germany’s famous automotive giant Volkswagen has recently been facing cost-cutting pressure, and there have been rumors that the company could make difficult decisions such as factory closures. However, German Economy Minister Robert Habeck is determined not to leave Volkswagen alone during this difficult process. Habeck visited Volkswagen’s Emden factory and stated that the government will do everything it can to help the company in this cost-cutting process.

German Economy Minister signals support for Volkswagen to avoid factory closures

Habeck stressed that it was important to ensure that labor policies were managed within the framework of collective bargaining in order to avoid plant closure. However, he added that state intervention could be limited, and said that the company’s future success depended largely on its own business structure and policies. “As a government, we can improve the framework, we can give the right market signals, but the main task lies with Volkswagen itself,” he said, reminding the company of its responsibility.

Showing that Volkswagen is not alone in this difficult process, Habeck stated that the transition to electric vehicles is also of critical importance for Germany. The German government plans to take steps to accelerate the transition to electric vehicles in the automotive sector and make Germany a world leader in this field.

However, the recent lowering of financial expectations by major brands such as BMW and Mercedes-Benz shows that the automotive sector is going through a difficult period in general. Habeck will meet with important representatives of the sector next week and hold more comprehensive discussions.

The talks are believed to be an important step towards Germany’s leadership in electric vehicles and overcoming the challenges in the automotive sector. How do you think Volkswagen and other automotive giants can overcome this difficult period? You can write your views in the comments section below.