Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Europe By The Numbers
  • Car Cutaways
  • Resource Center
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • PUBLICIS SAPIENT: The power of post-purchase: How automakers can maximize customer lifetime value
    • TOYOTA EUROPE: Toyota Motor Europe's next-gen C-HR: sensory innovations revealed by Vehicle UX leader
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • SENSEAUTO: Driving the future of mobility with SenseAuto: The AGI power behind the wheel
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automakers
January 16, 2020 06:52 AM

Germany plans aid for struggling auto industry

Birgit Jennen
Reuters
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Audi A8 Production Neckarsulm

    An A8 is shown on the production line at Audi's plant in Neckarsulm, Germany.

    BERLIN -- Chancellor Angela Merkel's government is preparing measures to aid workers in Germany's struggling auto sector, according to the labor ministry.

    Labor Minister Hubertus Heil plans to introduce wage subsidies for automakers and their suppliers to prevent possible job losses if the downturn in the sector continues, his ministry said in response to questions from Bloomberg.

    A similar mechanism was used successfully during the financial crisis of 2008 to prevent mass layoffs.

    The government is hosting talks with labor union and company representatives on Wednesday to discuss the plans, which would still require parliamentary approval.

    The meeting is not expected to produce a final decision, as the government itself cannot agree on the timing. While Heil, who is part of the Social Democratic Party (SPD), is pushing for a swift implementation, Merkel's ruling Christian Democratic Union (CDU) wants the Bundestag, the lower house in parliament, to have the final say on a time line.

    Automakers in Europe's largest economy had a turbulent 2019 as an economic slowdown coincided with a transition to electric and self-driving cars. Additionally, concerns about higher tariffs caused by the U.S.-China trade war stoked fears of a deteriorating environment for the industry.

    PSA Group's German division, Opel, said on Tuesday that it will cut up to 4,100 jobs, joining rivals around the globe in retrenching amid a sales slowdown and technological disruption.

    "The car sector is undergoing a difficult transition phase and needs more flexibility to respond to a slowdown," the SPD's deputy leader in the Bundestag, Carsten Schneider, told reporters Wednesday in Berlin.

    Wage subsidies allow companies to keep employees on their payroll during a downturn, but under current legislation are only allowed if the labor market as a whole is in trouble. Heil wants to introduce subsidies for specific sectors in trouble, such as the automotive industry.

    Under his proposal the government would pay social security contributions if a worker cuts back his or her working hours to take on vocational training.

    For January, the labor ministry expects 113,500 workers on a reduced workload program. During the financial crisis, the number peaked at 1.4 million in 2009.

    RECOMMENDED FOR YOU
    Aston Martin Chairman Stroll's Yew Tree increases stake in automaker
    Recommended for You
    Aston Martin new logo 22
    Aston Martin Chairman Stroll's Yew Tree increases stake in automaker
    VW Wolfsburg Golf production
    VW production back to normal after major IT outage
    VW ID4 electric SUV production
    VW's Zwickau plant will build Tesla fighter; Wolfsburg to produce electric Golf
    Toyota Europe and Capgemini leaders on restoring trust in the auto supply chain
    Sponsored Content: Toyota Europe and Capgemini leaders on restoring trust in the auto supply chain
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Europe By The Numbers
    • Car Cutaways
    • Resource Center
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • PUBLICIS SAPIENT: The power of post-purchase: How automakers can maximize customer lifetime value
        • TOYOTA EUROPE: Toyota Motor Europe's next-gen C-HR: sensory innovations revealed by Vehicle UX leader
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
        • SENSEAUTO: Driving the future of mobility with SenseAuto: The AGI power behind the wheel
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us