German Economy Minister Robert Habeck has announced that the government wants to help Volkswagen AG get through the cost-cutting period without resorting to factory closures, reflecting authorities’ fears about the situation facing the country’s largest automaker, reports Reuters.

During a visit to the Volkswagen plant in Emden, Germany, the official assured that the measures regarding the employees remain within the normal framework of collective negotiations, according to Agerpres.

Habeck’s statements come as the management of Volkswagen is about to start negotiations with the unions regarding new wage agreements and possible factory closures in Germany.

There are limits to the support that the Volkswagen Government can give, the structure and viability of the business depends on the company’s policy, explained Habeck. He added: “A large part of the problems must be solved by Volkswagen itself. It is within the company’s competence. Politicians can help by improving the legal framework and sending the right signals to the markets, including subsidies for electric vehicles (EVs).”

A new indication of the deterioration of the situation of the German car manufacturers was represented by the worsening of the annual forecasts by BMW and Mercedes-Benz. In this context, Habeck will meet on Monday with heads of car companies, component manufacturers and industry officials.

Currently, the Government in Berlin is closely following the situation at Volkswagen, which has approximately 300,000 employees in the largest economy in Europe, and is in negotiations with all parties involved.