How politics promoted the VW crisis

If you want to understand Volkswagen, it’s actually enough to talk about the currywurst. In the car manufacturer’s canteens there is an in-house “VW Currybockwurst”, produced in-house, with homemade ketchup, for employees even from 8 a.m. in the morning. When the sausage disappeared from the range in 2021, former Chancellor Gerhard Schröder was publicly outraged: “If I were still on the VW supervisory board, this wouldn’t have happened,” he said.

A top politician as controller of Europe’s largest car manufacturer? In Germany, i.e. Lower Saxony, this is completely normal. Politics has always had a say in the company, the Prime Minister sits on the supervisory board, the state holds 20 percent of the common shares and even has veto rights over the VW law. The origins of this are historical: Volkswagen is a Nazi invention, Hitler wanted to have his “Strength through Joy” car built in the drawing-board city of Wolfsburg, and forced laborers actually worked on military vehicles. After the war, the Allies took over the company and made it a requirement for the state to have a say, with consequences that continue to this day: No German company is as controlled by politics and unions as VW – and no company had as much say in politics as the Wolfsburg car manufacturer.

Affairs and scandals

Both sides benefited from this symbiosis for a long time. In Lower Saxony, an incredible 60 percent of employees have something to do with the automotive industry; across Germany, almost 800,000 jobs depend on VW – the automotive industry is by far the largest industry in the country. This brings massive taxes to the state and influence to the industry: In Berlin, people joked for a long time that the VW management had its own entrance in the Chancellery. After all, politics there was carried out for a long time in the spirit of Wolfsburg: Chancellors in Brussels repeatedly intervened when it came to regulating the industry; It didn’t matter whether it was from the SPD or the CDU.

Angela Merkel, for example, picked up the phone when it came to the strict EU climate regulations in 2008 and watered them down; later, behind the scenes, she prevented stricter limits and stricter controls for exhaust gases – this then took revenge in the diesel scandal. Her predecessor Gerhard Schröder, once Prime Minister of Lower Saxony, proudly called himself “Auto-Chancellor”, but this damaged his image: He had his friend and advisor, VW board member Peter Hartz, reduce unemployment benefits to Hartz IV, but he later stumbled upon one massive corruption scandal. Hartz had embezzled millions to “buy” the works council, including using prostitutes.

At a distance

Since the emissions scandal, people have been trying to keep their distance. That doesn’t always work: Stephan Weil, who is still Prime Minister of Lower Saxony, sent a government statement in advance to Wolfsburg in 2017 to be edited; of all things, the one about the diesel scandal. For observers, such missteps are also partly responsible for today’s crisis: politicians looked the other way for far too long when the core VW brand went downhill, they say HE DOES, Süddeutscher Zeitung and consorts.

Will the shouts from outside bring anything? It worked with the currywurst. It has been around again since 2023.

By Editor

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