Hesse’s Minister President Boris Rhein is considering financial support for the struggling automaker Volkswagen. This comes as VW’s crisis affects the state’s economy, particularly in Kassel, home to the company’s largest component plant worldwide.
Economic crisis threatens jobs in Hesse
Hesse’s Minister President Boris Rhein (CDU) is not ruling out financial aid for the struggling automaker Volkswagen (VW). In a summer interview with Hessischer Rundfunk (hr), Rhein described the situation as a “genuine economic crisis.”
“The economy is wounded,” said the head of government. “Therefore, we must discuss more than ever before whether we need to provide support in one area or another.”
When asked if this could include paying subsidies to the billion-euro corporation, Rhein responded, “That’s exactly the question. We need to examine it closely. What would the funds be for? What kind of support is necessary now?”
Impact on Kassel’s workforce
Europe’s largest automaker has announced that plant closures and layoffs can no longer be ruled out for the core VW brand. The Kassel plant, with approximately 15,500 employees, is the VW Group’s largest component factory worldwide and is considered the biggest employer in northern Hesse.
The potential impact on this significant workforce underscores the importance of the government’s considerations regarding support for the automotive industry in the region.
