German Government Intervenes To Stop Volkswagen From Closing Factories

“Our goal is to prevent the closure of locations in Germany,” said the government spokesperson. But the spokesperson also added that the choice ultimately rests with the company itself. Volkswagen is reportedly planning to close factories in Hanover, Zwickau, Emden, and Neckarsulm.

The car manufacturer, also the owner of Porsche and Audi, employs approximately 657,000 people. Volkswagen is suffering from American import tariffs and fierce competition from Chinese brands. The automaker’s profit fell last year to its lowest level since 2016.

Closures at Volkswagen, Europe’s largest car manufacturer, would be bad news for the German government, which is precisely trying to stimulate the German economy. To prevent factories from closing, the right preconditions must be created, says the spokesperson. “There must be incentives to ensure that these locations remain profitable.”

• Also See: Volkswagen Also Thinks They Have “Too Many Models”