(Bloomberg) -- German Economy Minister Robert Habeck floated the idea of additional support for the country’s carmakers and will discuss ways to address the challenges facing the embattled sector in talks with executives on Monday in Berlin.
Speaking during a visit Friday to a Volkswagen AG electric-vehicle plant in northwestern Germany, Habeck told workers that while auto producers must take some of the blame for their current woes, he feels “an obligation to do something to get the market going again.”
“A large part of the tasks must be solved by Volkswagen itself, some of which are legacy issues from the past, and cost structures need to be reviewed,” Habeck said in a subsequent statement to reporters at VW’s Emden facility near the Dutch border.
“What politicians have to examine is whether we can set the right market signals and strengthen them,” he added. Asked whether the government would provide more aid for carmakers, he said “it remains to be seen what further talks will bring.”
Europe’s auto industry has been struggling to cope with a drop in demand for EVs after governments including Germany scaled back financial incentives that had made the relatively expensive cars more affordable.
EV deliveries in Germany — the region’s biggest car market — fell 69% in August, fueling a 36% drop across the region, the European Automobile Manufacturers’ Association said Thursday.
Negative news for Germany’s storied carmakers keeps mounting. Mercedes-Benz Group AG Chief Executive Officer Ola Källenius pledged Friday he’ll do whatever it takes to bolster returns after the luxury-car maker warned on profit due to sluggish sales in China.
Volkswagen, the continent’s biggest automaker, is poised to close domestic factories in Germany for the first time due to lagging demand, while Munich—based BMW AG cut its full-year earnings guidance, partly citing sluggish EV sales.
©2024 Bloomberg L.P.
