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German Government Set To Support Volkswagen In Their Crises
German Economy Minister Robert Habeck said Berlin is looking for ways to support carmaker Volkswagen, which has announced job cuts and potential factory shutdowns in Germany.
The famous car company is struggling with weak sales of electric vehicles, Deutsche Welle (DW) reminds.
Minister Habeck, who is also the German Vice-Chancellor, confirmed the Government’s intentions to help Volkswagen (VW) because, according to him, it is a company of exceptional importance for Germany.
Government sources said the Ministry of Economy is considering how to solve weak sales of electric vehicles, Reuters and dpa reported. Sales of electric vehicles fell after the government stopped subsidizing them.
The ministry announced that the automotive association VDA, the trade union IG Metal Union, car manufacturers and suppliers will participate in the German car summit on Monday, September 23.
By the way, VW has terminated its decades-old job security contract with unions in Germany, and factory closings and layoffs are on the table, but the company has denied media reports that it plans to lay off up to 30,000 people.
VW reported a 14 percent drop in net profit in the first half of the year. The crisis also affected the net profit of BMW, which fell by almost 15 percent, and Mercedes-Benz, which fell by almost 16 percent, reminds DW.
