(Bloomberg) -- German Chancellor Olaf Scholz called on car manufacturer Volkswagen AG not to shut down factories, Funke media group reported, even as the leader acknowledged it was up to the company’s owners and labor representatives to discuss the matter.
Closing locations “would not be the right way” because poor management decisions contributed to the difficult situation, he told Funke media group in an interview published Saturday.
Scholz, a Social Democrat, said that while it was the owners who negotiated the specific decisions together with the social partners, it’s “always right to remind companies of their responsibility.”
His comments come ahead of a second wave of so-called warning strikes of VW workers across German plants planned for Monday. They are designed to pressure executives during deadlocked negotiations over how to slash costs.
VW is pushing for unprecedented factory closures, thousands of layoffs and 10% wage cuts at its flagship marque, which is struggling with poor demand in Europe and waning relevance in China, the world’s largest auto market.
©2024 Bloomberg L.P.