Volkswagen’s decisions must be made in close coordination with social partners, Economy Minister Robert Habeck said, reacting to the automaker’s announcements of potential job cuts and plant closures and called on “all those involved to meet their responsibility towards workers” .

As part of a restructuring plan, Europe’s biggest carmaker plans to tighten its austerity measures and remove the “job guarantee” for 110,000 workers, while not ruling out the possibility of closing some production lines and cutting jobs. The Minister of Economy stated that all decisions should be taken in close coordination with the social partners, stressing that the primary goal must always be to maintain Germany as an important location for the automotive industry. “All involved must live up to their responsibilities for the workers,” he said. Volkswagen has so far never closed a factory in Germany or anywhere in the world since 1988.

“Measures must be taken to ensure that Germany remains a major car producer and internationally competitive,” Mr Hambeck said, explaining that he decided to intervene after intensive consultations with social partners. Earlier today VW’s union leaders expressed their anger at the Group’s plans and vowed to fight hard against any plant closures or layoffs.

The finance minister acknowledged that carmakers face huge challenges as they turn to electrification to try to deal with foreign competitors. “German manufacturers have to keep up with the competition. The automotive industry is a cornerstone of the German economy and must remain so,” he said. “Major automakers and their suppliers are good employers for tens of thousands of workers across the country and a major force for innovation. And this is especially true for Volkswagen, one of the largest car companies in the world,” added the Minister of Economy.

Recently, however, the demand for electric cars in Germany has been limited, as the government has lifted the measure of their subsidies.