Habeck's visit to VW Emden: Keeping the climate course with e-mobility - leveraging cost advantages

In light of the crisis in the automotive industry, Federal Minister of Economics Robert Habeck promises new support measures for electric cars. "I feel an obligation to ensure that the market picks up again," said the Green Party politician during a visit to the VW plant in Emden. Habeck calls on Volkswagen to refrain from plant closures. "The locations should be maintained." Habeck invites to an "auto summit" next Monday.

Fear at VW

"The fear is obviously great," says Kai Fuhlhage, a representative of IG Metall. Together with a few colleagues, he welcomes Habeck in front of a hall. A sign reads: "All our locations must stay." VW is struggling with high costs in its core brand VW Passenger Cars. The automaker has terminated the employment security agreement that has been in place for decades with the unions in Germany, and plant closures and layoffs are under discussion. There is fierce resistance to this from the works council and IG Metall. The VW wage negotiations start next week.

Demand for electric cars collapses 

Only recently, the plant in Emden celebrated its 60th anniversary. In the past, cars like the Beetle and the Passat were produced here; today it's electric car models. However, after the abrupt stop of government subsidies at the end of last year, sales of electric cars have plummeted. The federal government had justified the stop with budget constraints. Fuhlhage also sees management errors at VW: cheaper electric car models should have come to market sooner.

According to a report by "Manager Magazin," the beleaguered company could cut up to 30,000 jobs in Germany in the medium term. The company does not confirm the number. The general works council emphasizes: "This number has no basis whatsoever and is simply nonsense."

Habeck wants to counteract

The minister takes a few minutes to talk to VW employees. He wishes them good endurance and strength in these "threatening times". After a tour of a production hall, Habeck says that VW must solve a large portion of its tasks on its own. He also says that reducing the cost structure does not mean "cold-heartedly" bypassing the workforce and questioning locations.

Minister wants to set "market signals"

Habeck points out that the federal government is already planning tax incentives for electric cars as company cars. Additionally, they will see if there's more that can be done. "What politics always needs to examine is whether we are setting the market signals correctly and if we can still reinforce them." Habeck does not get specific - but says: Possible new measures would apply retroactively. The message: buyers of electric cars should not hold back now.

Not just a crisis at VW

The German manufacturers are struggling with weak sales figures and high costs for switching to electric drives. This is causing profits to dwindle. Volkswagen reported a 14 percent decrease in surplus in the first half of the year, BMW saw a nearly 15 percent drop, and Mercedes-Benz almost 16 percent. The crisis has also reached automotive suppliers. At the same time, new competitors such as Tesla and manufacturers from China have entered the market.