Following a significant decline in profits reported by the Volkswagen Group for the second quarter, a leading German political party is advocating for a fundamental reset of the automaker’s strategy and the broader automotive industry.
Ines Schwerdtner, leader of the party, asserted that Volkswagen needs to shift away from a focus on maximizing returns and instead prioritize a sustainable corporate strategy. She argued for a return to Volkswagen producing affordable vehicles for a wider population, rather than focusing solely on high-priced SUVs.
The call for change extends beyond vehicle type, encompassing a complete restructuring of production. Schwerdtner emphasized the need to increase the production of vehicles for public transportation systems and hardware supporting the energy transition. She suggested that relying solely on passenger cars will not secure jobs within the company and that the technical expertise of the workforce should be leveraged to broaden the production range.
Recognizing that Volkswagen’s situation is not unique, Schwerdtner called for a substantial investment program, valued at €200 billion, to address existential challenges facing German industry. The funds would be channeled into an investment fund, providing financial support – through loans or equity stakes – to companies undergoing a climate-friendly transformation.
To ensure stability and facilitate production shifts, a government guarantee for the purchase of electric buses and other electric vehicles is also being proposed. Schwerdtner further stated that reforms to Germany’s debt brake are necessary to free up the required capital.
Finally, she stipulated that any government investment in companies, or funds allocated for industrial restructuring, should be free from executive bonuses and preclude job cuts. A job and training guarantee for employees within the automotive industry is considered essential for a successful and sustainable transition. The emphasis is on securing fair wages, collective bargaining agreements and stable employment as the foundation for a sustainable economic policy.