Emden
Amid the Volkswagen crisis, German Federal Minister for Economic Affairs Robert Harbeck visits the Volkswagen plant in Emden today. The visit is part of a series of company tours by green politicians. Given the industry’s crisis, Harbeck is inviting people to an “automotive summit” next Monday. According to the industry ministry, representatives of the VDA industry association and the IG Metall trade union, as well as the largest car manufacturers and suppliers, will be attending.
VW is struggling with high costs at its core VW passenger car brand. The automaker has ended decades-old job security from German unions and is discussing plant closures and forced layoffs.
According to a report in “Manager Magazine”, the sick company could cut up to 30,000 jobs in Germany in the medium term. The company did not confirm the figures. The works council declared that “these figures are completely unfounded and ridiculous.”
industrial crisis
German manufacturers are struggling with low sales figures and the high costs of switching to electric drives, which are eating away at their profits. Volkswagen reported a 14 percent drop in profits in the first half of this year, BMW almost 15 percent and Mercedes-Benz almost 16 percent. The crisis has also affected car suppliers. At the same time, new competitors such as Tesla and Chinese manufacturers are entering the market.
Electric car sales slump
Electric vehicle sales plummeted after government support was abruptly cut late last year. The federal government justified the cuts due to budget constraints. The government is now planning to classify electric vehicles as company vehicles and provide stronger tax incentives. The cabinet has put the planned measures into action.
The Volkswagen plant in Emden is of great importance to the region.
Volkswagen employs around 8,000 people in Emden. The VW site is the most important industrial employer in the region. For the group, the East Frisian plant, which has been producing cars for 60 years, is an important location for the production of electric vehicles.
In recent years, VW has converted this plant, which is still in operation, into a dedicated production plant for electric vehicles. It is the first plant in Lower Saxony and the second in Germany after Zwickau. According to its own information, the group has invested more than 1 billion euros in new production capacities in Emden since 2020.
Electric vehicle construction
Last summer, VW started series production of the ID. 7 electric sedan in Emden. The compact SUV ID. 4 has been produced in Emden since May 2022. Finally, demand plummeted when the German electric car purchase bonus was canceled at the end of 2023. As a result, the Emden car plant has not been operating at full capacity recently.
notification: This report is part of an automated service of the German Press Agency (dpa), which operates under strict journalistic regulations. The AZ Online editorial team does not edit or check it. Please send questions or comments to Feedback@az-muenchen.de.
