In view of the crisis in the industry, Federal Minister of Economics Robert Habeck (Greens) is inviting people to an “auto summit” next Monday. Habeck has invited people from the automotive industry to discuss the current situation, said a spokeswoman for the ministry. The “Bild” newspaper was the first to report on this. In addition to the industry association VDA and the union IG Metall, the largest automotive manufacturers and suppliers are taking part.
Habeck is visiting the VW plant in Emden on Friday. VW is struggling with high costs in its core brand VW Passenger Cars. The carmaker has terminated the job security agreement it has had with the unions in Germany for decades, and plant closures and redundancies are under discussion.
German manufacturers are struggling with weak sales figures and high costs for switching to electric drive. This is causing profits to melt away. Volkswagen reported a 14 percent drop in profits in the first half of the year, BMW’s profits fell by almost 15 percent, and Mercedes-Benz’s by almost 16 percent. The crisis has also reached automotive suppliers.
After the government stopped subsidizing, sales of electric cars have collapsed. The federal government is planning stronger tax incentives for electric cars as company cars. The cabinet had put planned measures in motion.
© dpa-infocom, dpa:240919-930-237624/1
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