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Habeck on VW Crisis: Maintain Transformation, Continue Phasing Out Combustion Engines

(dpa/jr) The Federal Minister of Economics reminds the corporation of its responsibility. He appeals to stay on course during the transformation and not to question the phase-out of combustion engines. The electric push is to come through tax incentives for company cars.

In the storm: The VW Group is facing a crisis, particularly at its core Wolfsburg brand, and is even considering plant closures. The Minister of Economic Affairs appeals to their sense of responsibility and still urges them to persevere through the transformation. | Photo: dpa/Julian Stratenschulte
In the storm: The VW Group is facing a crisis, particularly at its core Wolfsburg brand, and is even considering plant closures. The Minister of Economic Affairs appeals to their sense of responsibility and still urges them to persevere through the transformation. | Photo: dpa/Julian Stratenschulte
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Johannes Reichel

Federal Minister of Economics Robert Habeck is intervening in the crisis at Volkswagen. The Green politician stated in Berlin that decisions must be made in close coordination with social partners and that the goal must be kept in mind to ensure that Germany remains a strong automotive location. "All parties involved must live up to their responsibility for the employees at the locations."

Europe's largest car manufacturer had announced that within the framework of a cost-saving program at the core brand VW, plant closures and layoffs can no longer be ruled out. The agreement on job security concluded with the works council would be terminated, the company announced. This agreement ruled out layoffs due to operational reasons until 2029. Employee representatives and trade unions reacted with dismay. Habeck called the automotive industry a cornerstone of Germany's industrial sector. "That should remain the case." The major automobile manufacturers and their suppliers are good employers for tens of thousands of employees, "engines of prosperity" in regions across the country, and drivers of innovation across industry boundaries.

"This applies even more to VW as the second largest car manufacturer, and the company bears a great responsibility here."

The transformation efforts for the automotive industry are currently enormous, said Habeck with a view to the shift towards e-mobility. German car manufacturers need to keep up in this competition. Long-term planning security is also crucial as a location factor. The EU directive, which stipulates that only CO2-neutral vehicles will be allowed to be newly registered from 2035, creates this security.

Tax incentives on e-company cars to give a boost

This de facto ban on new combustion engine vehicles is highly controversial. Following the cessation of government subsidies for the purchase of electric cars, new registrations in Germany have plummeted. The federal government now wants to boost the demand for electric cars as company vehicles. Stronger tax incentives are planned. A corresponding draft law as part of the "Growth Initiative" is set to be approved by the cabinet on Wednesday, according to sources from the Ministry of Economic Affairs. Habeck had already spoken of a push to boost demand for e-mobility again.

Translated automatically from German.
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