The government is going to step in to provide assistance? The German Minister of Economy hints at providing additional aid to car manufacturers.

date
20/09/2024
avatar
GMT Eight
German Economy Minister Robert Habeck has put forward the idea of providing additional support to the country's car manufacturers, and will discuss with executives in Berlin on Monday how to tackle the challenges facing the troubled automotive industry. On Friday, Habeck told workers at a Volkswagen electric car factory in northwestern Germany that car manufacturers must take some responsibility for the current crisis, feeling "obliged to do something to get the market back on track." Habeck later issued a statement at Volkswagen's Emden plant near the Dutch border, saying, "Most of the tasks must be solved by Volkswagen themselves, some of which are legacy issues, and the cost structure needs to be re-examined." He added, "What politicians need to consider is whether we can set the right market signals and strengthen them." When asked if the government will provide more assistance to car manufacturers, he said, "The results of further negotiations are still to be observed." The European automotive industry has been struggling with a decline in demand for electric cars, with governments in countries such as Germany cutting back on fiscal incentives that had previously made relatively expensive cars more affordable. The European Automobile Manufacturers' Association said on Thursday that electric car deliveries in Germany, the largest car market in the region, dropped by 69% in August, leading to a 36% decrease in electric car deliveries across the entire European region. There has been a growing stream of negative news concerning well-known German car manufacturers. Ola Kllenius, CEO of luxury car manufacturer Mercedes-Benz Group, pledged on Friday to make every effort to boost performance. Earlier, the company issued a profit warning due to sluggish sales in the Chinese market. As demand remains weak, Volkswagen, the largest car manufacturer on the European continent, is preparing to close its domestic factories in Germany for the first time. At the same time, BMW, based in Munich, has lowered its full-year profit expectations due in part to slow sales of electric cars.

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