German government welcomes Volkswagen restructuring deal despite 50,000 job cuts

The German government called Volkswagen’s restructuring agreement “good news,” even as the plan will cut 50,000 jobs over the coming years. The company’s supervisory board approved the plan unanimously on Thursday.

Deputy government spokesman Sebastian Hille said the agreement showed that cooperation between employers and workers could produce a plan for the future. “We explicitly welcome the fact that they were able to reach this compromise and trust that the social partners and all those involved will continue working together on viable solutions for the future,” he said.

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Good news.

Hille acknowledged the scale of the job losses, but argued that failing to reach an agreement would have been worse and could have created much larger problems, including further staff reductions. The plan covers the Volkswagen group and brands including Volkswagen, Audi, Porsche and Seat/Cupra. He said the government was closely monitoring the difficult situation facing the wider automotive industry and would support it.

The government also addressed possible European Union tariffs on Chinese plug-in hybrid vehicles. Citing Chancellor Friedrich Merz, Hille said Berlin did not want a new trade conflict with China, but wanted open dialogue about imbalances that disadvantage German industry. He said Germany needed effective tools to defend its interests while supporting open, free global trade based on fair competition and rules.

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We explicitly welcome the fact that they were able to reach this compromise and trust that the social partners and all those involved will continue working together on viable solutions for the future.