Volkswagen receives €1.48bn in German EV subsidies amid worker protests and plant closures
Volkswagen got the largest share of €1.48bn in German electric-car subsidies while thousands of autoworkers demonstrated against massive job cuts and factory shutdowns.
Data released through a parliamentary inquiry shows that Germany has spent €10.1bn on incentives for electric vehicles between 2020 and 2026, with Volkswagen receiving the biggest portion at €1.48bn, followed by Tesla and other major brands. Despite the financial support, the automaker faces intense labor unrest, as tens of thousands of workers rallied against announced closures of factories in Emden, Hanover, Zwickau and Neckarsulm, which could affect up to 100,000 jobs and many suppliers.
Electric-car adoption is rising, with a record 30% of new registrations being fully electric, according to the Federal Motor Transport Authority. Volkswagen's market value fell enough to be removed from the Euro Stoxx 50 index, and the firm disclosed plans to repurpose its Osnabrück facility for weapons production for Israel's Rafael Advanced Defense Systems. Critics highlighted the irony of a company founded under the Nazi regime now supplying arms to a nation accused of war crimes.
Why it matters
The story shows how public subsidies can benefit a major carmaker even as it cuts jobs and shifts production to weapons, raising questions about policy effectiveness and corporate responsibility.
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