Head of vw supervisory board: prevent second lockdown

head of vw supervisory board: prevent second lockdown

VW supervisory board chairman hans dieter potsch has appealed to political and economic leaders to prevent a second corona lockdown and further market closures at all costs during the crisis.

In view of the considerable damage already caused by the first wave of the pandemic and the fact that the number of infections is rising again, "all efforts must now be focused on this," said the chief controller of the wolfsburg car company at an event of the german chamber of commerce in vienna. The austrian potsch is the president of the chamber.

The question is whether the aid programs adopted so far are sufficient to get the economy through the next few months in good shape," said potsch. At present, the overall situation remains "more than worrying". The volkswagen chief supervisor cited "unstable to weak" demand, underutilization of industrial production and a possible sharp increase in covid 19 traps in the fall and winter as key issues. "My expectation of politicians in this situation is to prepare for a further deterioration in economic conditions."

The ongoing stimulus measures also had to be tested for their effectiveness and readjusted if necessary: "everything possible must be done to put the economy as a whole and the auto industry in particular in a robust position."Another "auto summit" with representatives from politics and the industry is planned for next week. Government and company-funded purchase subsidies to help overcome the deep sales crisis. But the manufacturers were unable to get their way with their demand that modern internal combustion engines be required in addition to electric and hybrid cars. Massive job losses loom in the industry and especially among suppliers.

Potsch warned urgently against a possible further flare-up of protectionist tendencies in order to protect their own national economies. There is now a call for renationalization of production, he said. "However, this does not seem to us to be a solution to the current problems."Open markets are crucial for prosperity even in times of crisis. "In germany, one in four jobs depends on exports, in industry even one in two."

There had been disruptions in globally networked supply chains in the course of the pandemic. But overall, supply relationships had withstood the pressure. In the meantime, he is also noticing good news about the recovery of many sectors, and politicians have reacted in a positive way. Overall, however, from his point of view: "the situation remains tense."

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