German gov’t explores support for Volkswagen amid concerns over job cuts

Germany’s government is considering ways to support Volkswagen, as Economy Minister and Vice-Chancellor Robert Habeck addressed concerns about potential job cuts at the country’s largest automaker.

"VW is of central importance to Germany," Habeck said. The minister will visit a VW plant in the city of Emden on Friday, News.Az reports, citing foreign media.

Volkswagen said this month it needed to cut costs significantly at its namesake brand in Germany, citing high costs, low productivity and fierce competition.

Habeck declined to comment on a report in the German monthly business magazine Manager Magazin, which said that some within the company reckon the group's German workforce would have to come down by 30,000 over the mid-term, or about 10% of the Volkswagen Group's total German workforce. It did not cite sources.

That number, which has been frequently cited in the past with regard to potential job reductions at Volkswagen in Germany, "has no basis whatsoever and is simply nonsense," a spokesperson for the carmaker's works council was reported as saying by Reuters.

Chief Financial Officer (CFO) Arno Antlitz is planning to cut funds for investments over the next five years to 160 billion euros, according to the Manager Magazin.

VW had previously set its medium-term planning target for the period from 2025 to 2029 at 170 billion euros.

VW is struggling with high costs in its core brand, VW Passenger Cars.

The carmaker has terminated its decades-old job security agreement with unions in Germany, and plant closures and layoffs are on the table.

News.Az