SPD wants state participation for auto suppliers

Before tomorrow’s auto summit, SPD boss Norbert Walter-Borjans is calling for auto suppliers in distress to be supported with a state-owned participation fund.

SPD Co-Chief Norbert Walter Borjans

AThe SPD has also spoken out in favor of supporting auto suppliers in distress with a state-owned participation fund. SPD boss Norbert Walter-Borjans told the “Handelsblatt”: “We want to help ensure that things move forward during and after the corona crisis and that future-proof jobs in the automotive industry are maintained.”

The fund was primarily intended to help medium-sized suppliers overcome financial bottlenecks and to promote the switch to environmentally friendly drives.

“That would help the entire industry,” he said. “The suppliers are the foundation for car manufacturing, nothing works without them.” State participation should also prevent “highly innovative and highly qualified companies from becoming cheap takeover candidates for investors outside the EU”.

Previously, IG Metall, for example, had campaigned for a fund before another top meeting between Chancellor Angela Merkel (CDU) and industry representatives on Tuesday evening. The IG Metall chairman Jörg Hofmann advocated a state “SME and transformation fund” that invests in companies in need. “If the state assumes part of the risk, the small and medium-sized enterprise could provide the strength to invest and innovate,” said Hofmann of the “Frankfurter Allgemeine Sonntagszeitung”.