The German government intends to stop domestic plant closures at Volkswagen, Europe's largest carmaker, according to a spokesperson on Monday, although stressing that the decision ultimately depends on the embattled company.
The automaker, under pressure from Chinese rivals, U.S. tariffs and dwindling demand in Europe, is considering shutting four German factories and ramping up job cuts to as many as 100,000, two people familiar with the matter said on Friday.
Closures at such a major industrial group would deal a further blow to the German government's efforts to revive a sluggish economy and improve weak poll ratings.
"Our aim is to prevent the closure of sites in Germany," the spokesperson said.
"To achieve this, the right framework conditions must be in place, including the necessary competitive mechanisms. Incentives must be provided to ensure that these sites remain profitable," he said.
