The German Minister of Economy warned Volkswagen about producing cheap cars.

As European car giants strive to remain strong against Chinese competition, German car manufacturer Volkswagen has decided to close many of its factories to save costs. While the German giant is working on savings, a notable call came from German Economy Minister Habeck to Volkswagen.

CHINA WARNING

Warning the German automotive industry about competition and supply issues, Habeck stated, "Many things are coming together in the automotive industry, but above all, the Chinese are entering the market, as we have seen with solar panels." Habeck pointed out that Germany could do more to revitalize the electric car market, citing a €1,000 charging credit when purchasing used or new electric cars and tax incentives for low- and middle-income individuals as examples.

"PRODUCE ELECTRIC CARS FOR €20,000"

Habeck also urged German car manufacturer Volkswagen to produce cheaper electric cars, saying, "Produce an electric car for €20,000. Your name is not luxury car, it is people's car (Volkswagen)." Robert Habeck also indicated that there would be more demand for affordable electric vehicles that Volkswagen would produce.