Germany’s economy minister and vice chancellor Robert Habeck said Thursday the government has plans to bail out Volkswagen (VW), the country’s leading car maker amidst fear of job losses. This follows news that VW has recently stated a large core brand will have to undergo major cost cuts operating in Germany these difficulties have been blamed on high operating costs, low efficiency and more competition in the car manufacturing business.

Saving jobs ‘VW is of central importance to Germany,’ Habeck has said at a press briefing in Papenburg, Lower Saxony. He plans to fly to Emden on Friday to pay another visit to the VW plant.

Inside the economic ministry, sources state that meeting has been held with concerns over the slow sales of electric vehicles, which is important in the future of the automotive industry in Germany. On a similar note, a German car summit will be held on Monday where participants from the automobile association VDA, the labour union IG Metall along with some of the car making companies and suppliers will come together to discuss the issues facing this industry.

Although there are predictions about possible layoffs in VW which may involve about 30000 employees which is roughly 10% of the German workers, Bendarme Habeck remained silent on the rumors. A representative of Volkswagen’s works council described them as “mere creation and figment of someone’s imagination,” saying that the figure can in no way be considered as an actual estimate of the company’s losses.

In a more recent change of tack, VW management has just axed long-standing wage deals in what is also expected to begin the negotiation process with unions next week. These talks are going to complement new structures as the firm is facing the threat of having to shut down factories in Germany and entering a new phase of the company’s development.

Looking to the future, the German government must determine its future course of action and members of the industry are keen on finding the best strategy in order to preserve jobs alongside checking on competitiveness in automotive industry.