Scholz: Automotive industry will 'master the upheavals'

2024-09-07 23:55:07

Automotive

Government

Scholz: Automotive industry will 'master the upheavals'

Image courtesy of : AFP (TOBIAS SCHWARZ)

Despite the current crisis at Volkswagen, German Chancellor Olaf Scholz wants to spread optimism. He believes that the German automotive industry will remain a significant part of the country's industrial sector and will be able to navigate the upcoming global changes, including the shift towards electric vehicles.

The government is taking steps to support the industry, such as improving the tax conditions for electric company vehicles and increasing the number of charging stations. Scholz expressed his commitment to standing by the industry and ensuring that the company overcomes the crisis and secures jobs and locations.

Meanwhile, individuals in struggling industries are advised to consider switching to related sectors and invest in personal development to make a successful career transition.

German Chancellor Olaf Scholz expresses confidence in the future of the automotive industry, despite the current crisis at Volkswagen. Scholz believes that the German automobile industry will remain a significant sector in the country's economy and will successfully navigate the upcoming changes, including the shift towards electric vehicles. The government is taking steps to support the industry, such as improving tax conditions for electric company vehicles and expanding the number of charging stations. In the face of Volkswagen's announcement of a tougher cost-cutting plan, including possible factory closures and job losses, Scholz assures that the government stands with the employees and the industry, working towards securing jobs and maintaining the stability of the company. Additionally, Hessen's Minister President, Boris Rhein, considers providing financial support to Volkswagen to help mitigate the impact of the crisis on the region's largest component plant and largest employer.

The VW crisis threatens Germany's prosperity model with job guarantees being cancelled and plant closures looming. The crisis exposes structural weaknesses such as high costs, slow bureaucracy, and insufficient investments. Production and supply chains have also been disrupted by protectionism and the COVID-19 pandemic. Questions about political responsibility and trade union co-determination arise. The structural change required demands political reforms to promote it. The federal government, which aimed to drive structural change, has so far achieved the opposite. The causes of the VW crisis are complex, intertwined with management's poor decisions and erratic political interventions, making finding a solution particularly challenging. The industry demands better conditions from the government, with the BDI President criticizing the current situation and emphasizing the need to advance electric mobility in line with the industrial sector. The VW CEO justifies the cost-cutting measures due to the difficult European automotive market and the deteriorating competitiveness of German locations. Subsidies are being considered as a possible solution, while the Left party calls for shareholders to repay a 4.5 billion euro dividend. The crisis has led to discussions on implementing a four-day workweek to improve the quality of life for employees and prevent job losses. This move could have a significant impact on the industry and serve as a signal to other companies. The VW crisis has brought to light the need for new concepts of prosperity due to resource scarcity.

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Scholz: Automotive industry will 'master the upheavals'

Volkswagen Crisis: SPD Leader Proposes Four-Day Week or Turntable Model for VW

Many engineers affected: Auto supplier ZF wants to cut more than 100 jobs in Düsseldorf

Automotive industry is shaky: Company on austerity course? Tips for a successful industry change - n-tv.de

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Scholz: Automotive industry will 'master the upheavals'

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