German Economics Minister Robert Habeck has called on Volkswagen not to close any factories.
“The sites must be preserved,” he said during a visit to the VW plant in the northwestern city of Emden. All efforts must be directed towards this goal, he added.
His comments come after the carmaker ended its decades-long labor agreement with unions in Germany, raising concerns about factory closures and layoffs.
However, Habeck said streamlining the cost structure did not mean “cold-heartedly” ignoring staff and putting locations up for discussion.
Volkswagen has never closed a factory in Germany, and has not closed one anywhere in the world since 1988.
The automaker is struggling to manage its transition to electric vehicle production, with poor prospects in the key Chinese market and fierce competition from emerging Chinese automakers.
The economy minister announced new financing measures for electric cars and said the federal government was planning tax breaks for electric cars used as company cars, and would also look at whether more could be done.
According to a report by Manager Magazin, VW could cut up to 30,000 jobs in Germany in the medium term. The company did not confirm the number.
“This figure is completely unfounded and is simply nonsense,” said the central works council.
Habeck has invited representatives to a “car summit” on Monday, given the crisis in the sector. In addition to the industry association VDA and the trade union IG Metall, representatives of the largest car manufacturers and suppliers will participate, the ministry said.
