The German government announced its desire to prevent the closure of Volkswagen plants

The German government aims to prevent the closure of Volkswagen AG's production facilities in the country. This was reported by the Reuters news agency on June 29.

"Our goal is to prevent the closure of businesses in Germany. <...> To achieve this goal, it is necessary to create appropriate framework conditions, including the necessary competition mechanisms. It is necessary to provide incentives so that these sites remain profitable," said a representative of the German government.

However, he noted that the final decision remains with the concern itself and the authorities understand that Volkswagen is taking such a step solely for commercial reasons.

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Group CEO Oliver Blume said on June 26 that Volkswagen AG intends to cut 100,000 jobs in the coming years, as well as reduce the number of investments by about 15% to €130 billion over the next five years. Among other things, Blume said that four VAG plants in Germany will be closed: in Hanover, Zwickau, and Emden, as well as the Audi plant — which is also part of VAG — in Neckarsulm.