German Economy Minister Robert Habeck has called a car summit for next Monday, where he expects car manufacturers, unions and suppliers to attend. After several alarming reports in recent weeks, the German car sector is in crisis.
German carmakers are struggling with low sales and high costs to make the switch to electric vehicles. In the first half of this year, Volkswagen’s net profit fell by 14 percent, BMW recorded a decline of almost 15 percent and Mercedes-Benz even almost 16 percent. Suppliers are also starting to experience the problems.
Habeck will visit the Volkswagen factory in Emden, in the northeast of the country, on Friday.
Volkswagen Considers Closures
Europe’s largest carmaker, Volkswagen Group, has been hit particularly hard by the sector’s problems. CEO Oliver Blume said in early September that the carmaker was considering closing factories in Germany for the first time in its history. At the time, there was talk of at least one assembly plant and one site where parts are produced.
The company also terminated a job security agreement with the unions. German magazine Manager Magazin reported on Thursday that 30,000 jobs could be cut in Germany. The carmaker did not confirm those figures. “One thing is clear: Volkswagen must reduce costs at its German plants,” a spokeswoman responded.
Audi Brussels
In our country, the factory of VW subsidiary Audi – Audi Brussels – is threatened with closure. The group confirmed earlier this week that no internal alternative had been found for the factory, once production of the electric Q8 e-tron is stopped.
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