[AMG Power]

Germany’s economy minister and vice chancellor Robert Habeck said Thursday the government has plans to bail out Volkswagen (VW), the country’s leading car maker amidst fear of job losses. This follows news that VW has recently stated a large core brand will have to undergo major cost cuts operating in Germany these difficulties have been blamed on high operating costs, low efficiency and more competition in the car manufacturing business.

Although there are predictions about possible layoffs in VW which may involve about 30000 employees which is roughly 10% of the German workers, Bendarme Habeck remained silent on the rumors. A representative of Volkswagen’s works council described them as “mere creation and figment of someone’s imagination,” saying that the figure can in no way be considered as an actual estimate of the company’s losses.

In a more recent change of tack, VW management has just axed long-standing wage deals in what is also expected to begin the negotiation process with unions next week. These talks are going to complement new structures as the firm is facing the threat of having to shut down factories in Germany and entering a new phase of the company’s development.

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