FRANKFURT (Reuters) – Factory closures would be a wrong move by Volkswagen (ETR:), German Chancellor Olaf Scholz said, adding that Europe’s biggest carmaker had a responsibility to its employees.
Volkswagen is embroiled in a bitter dispute with staff over pay cuts and possible factory closures aimed at countering high costs in Germany and massively cheaper Asian rivals entering Europe.
Both sides will enter a fourth round of negotiations on Monday.
“Specific decisions will be negotiated between the owners and union representatives. My opinion is clear: closing locations would not be the right way to go,” Scholz told the Funke Media Group.
“It would not be right because poor management decisions contributed to the difficult situation,” he added.
The state of Lower Saxony is Volkswagen’s second-largest shareholder, and its state premier, like Scholz, has urged the group to avoid site closures.
