German auto supplier giant announces drastic measure over Corona crisis

The German economy is hard hit by the corona crisis. The government promises aid packages for many companies. There is bad news from supplier ZF Friedrichshafen. News ticker.

• The Federal Council approves further extensive aid in the corona crisis .
• Individual economic sectors warn of the long-term consequences of the corona pandemic .
• Large German companies announce job cuts - accelerated by the current situation.
• You can read all the latest news on the German economy in the Corona crisis here .

Update of May 28, 7.44 p.m .:   According to a newspaper report, Germany's third largest  automotive supplier ZF Friedrichshafen is planning to cut up to 15,000 jobs . "From today's perspective, we need to adjust our capacities worldwide and cut 12,000 to 15,000 jobs worldwide by 2025, about half of them in Germany, " says an internal letter from the ZF Executive Board to the company's workforce based in Friedrichshafen, Baden-Württemberg, from which the Südkurier quotes.

Corona crisis accelerates job cuts at automotive supplier ZF

Details would be negotiated with the employee representatives in the next few weeks, according to the employee letter. A spokesman for the company did not want to comment on the plans at the request of the paper. At the beginning of the year, ZF employed just under 148,000 people across the group, just under 51,000 of them in Germany . Up to the end of 2022, operational layoffs at ZF have so far been ruled out (behind the pay barrier).

"We are still dependent on short-time work for a long time": The CEO of ZF Friedrichshafen, one of the largest automotive suppliers in the world, explains the consequences of the corona crisis for the supply chain and the entry into mask production. The interview @raznzz https://t.co/O92meHkZdd

The automotive industry worldwide is suffering massively from plant closings and sales losses due to the Corona crisis. German manufacturers are asking the federal government for support in the form of a premium for buying a car . However, the demand is also highly controversial within the grand coalition.

Corona: Condor holiday aviator draws on the state rescue loan

Update of May 25, 3:17 p.m .: Condor , a state rescue pilot, is hoping for a quick solution in the search for a new investor despite the Corona crisis. According to the airline boss Ralf Teckentrup, a new protective shield plan is currently being drawn up, which will largely correspond to the previous plan. "If things go well, we can leave the protective shield in the next three months," the manager told fvw magazine . However, the market had to calm down before Condor was offered for sale again.

Condor is currently being held in the air with a new government rescue loan worth over 550 million euros . A first rescue package procedure had failed at the beginning of the Corona crisis when the Polish PGL group broke the already agreed takeover of the German leisure airline . The Frankfurt-based company, with around 4900 employees and more than 50 aircraft, went into a protective shield procedure after the bankruptcy of the British parent company Thomas Cook in September 2019 and was renovated there.

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By the beginning of the summer vacation season on June 25, the flight program is to be ramped up to around 40 percent of the originally planned traffic. Teckentrup expects to be able to offer up to 60 percent by the end of October. The aim is to utilize the machines to around 80 percent.

Corona crisis meets business - Altmaier plans further aid package for medium-sized companies

Update of May 25, 12:28 p.m .: That a car purchase premium will come because of Corona in Germany is considered to be decided. In what form, however, causes a heated debate. Supposedly, the “scrappage premium 2.0” should also include vehicles with higher pollutant emissions - Germany's best-known climate activist is horrified.

Update of May 25, 2020: In order to cushion the consequences of the corona pandemic for medium-sized companies , Minister for Economic Affairs Peter Altmaier (CDU) wants to support them even more. Are from June to December companies with up to 249 employees m onatlich can get up to 50,000 euros . This was reported by the Neue Osnabrücker Zeitung from a key point paper that, according to information from dpa, comes from the Ministry of Economic Affairs. 

The aim of this bridging aid is to ensure the existence of small and medium-sized companies that are affected by corona-related closings and requirements. In addition to companies from all sectors of the economy, applications should also be open to freelancers and solo self-employed persons. Prerequisite for the application: The sales of those affected must have dropped by at least 60 percent in April and May compared to the same months in the previous year. Companies that already receive emergency aid from the federal government or the federal states may also apply for further support. According to the report, the ministry expects the costs to rise to 25 billion euros by August - how much later will depend on the infection rate.

Corona crisis: Wirtschaftsweiser warns Merkel's government - and slows Söder down too

Update of May 24, 2020: The debate about the planned corona stimulus program of the Merkel government is in full swing. What measures should there be and how expensive can it be? The leader of the “economic modes”, Lars P. Feld , demands: Priorities have to be set.

Feld has urged the federal government to stick to the planned stimulus package. "There must be no free beer for everyone," said Feld of the dpa in an interview published on Sunday. “The state must not be overwhelmed financially.” That is why the funds should be used as effectively as possible - wherever every euro brings the most. Feld declined plans for a family bonus. "A family bonus or consumer vouchers would fizzle out."

"I'm not a fan of a debt ceiling, as Söder has now proposed, in such an economic situation," said the economist. Because it could be necessary to increase debt if the economy is doing even worse. "But in the current situation, so many interest groups have made demands that you have to brake."

Corona crisis: Short-time work could cost more than 30 billion euros by the end of the year

In the meantime, the cost of some Corona relief measures is also becoming clear. According to the Federal Employment Agency, the cost of short-time work could be more than 30 billion euros by the end of the year . "The federal government would have to help out," said BA chief Detlef Scheele the Tagesspiegel . So far, the BA has only paid EUR 2.5 billion in short-time work benefits. However, this is due to the fact that many companies have not yet billed.

In total, short-time working was registered for more than ten million employees in Germany in the Corona crisis . The Nuremberg authority assumes, however, that in the end not all people for whom an application has been made will actually claim short-time work benefits.

Update of May 22, 4:50 p.m .: The Corona pandemic is changing and affecting the economy around the world. Experts now expect a “revolution” - which could also affect a symbol of capitalism.

Corona crisis: McDonald's branches hit hard - now the headquarters is responding

Update of May 22, 9:43 p.m .:  The fast food business is also suffering from the corona crisis - McDonald's is now waiving part of the payments from its restaurant operators in Germany. They were the deferred lease and franchise fees for March and April , a portion of the rent also adopted as the Wirtschaftswoche reported. The burger is also planning an advertising offensive. The background is that from Monday onwards, the interior of the fast-food restaurants can be used in all federal states again, a spokesman said on Friday.

McDonald's in Germany is also feeling the effects of the corona crisis.

© dpa / Karl-Josef Hildenbrand

Most of the 1480 McDonald's restaurants in Germany are operated by around 200 franchisees . According to the report, the company is now temporarily foregoing a double-digit million amount . Additional help should be decided in individual cases. During the crisis, McDonald's tried to sell as much as possible through the drive-in desks . Germany's boss Holger Beeck told the paper that this was far from being able to compensate for the loss in the interior .

An expert has meanwhile criticized the hygiene rules for gastronomy in Germany.

German economy in the corona crisis: Merkel warns of foreclosure

Update from May 20, 10:22 p.m .: Chancellor Angela Merkel warns of economic foreclosure in the Corona crisis. "The answer to the pandemic can certainly not be to renationalize all international supply chains now," said the CDU politician in Berlin. "Then everyone would pay a very high price ." She said after a video conference with the chairs of five international economic and financial organizations.

The long-time party leader also emphasized the importance of international cooperation between states. " Multilateralism was faced with a major challenge even before the pandemic, and this challenge has not diminished ." The corona pandemic was only over when there was a vaccine against the virus or good treatment options. These should therefore be understood as “global communal goods” and should therefore be made available to everyone.

Because of Corona: hosts and hotels experience worst month in 25 years

Update from May 20, 4:05 p.m .: Hotels and restaurants in Germany lost almost half of their sales in March due to corona-related restrictions. The minus in the hospitality industry was 44.6 percent in February and 45.4 percent in March 2019, as the Federal Statistical Office announced on Wednesday. The German Hotel and Restaurant Association (Dehoga) expects sales to drop by more than 90 percent in April and again called for a rescue fund.

Even if the tables are set again: Germany's hosts do not expect any economic improvement

© dpa / Philipp von Ditfurth

The losses in March were, according to statistics, the worst since the beginning of the time series in 1994. The Dehoga recorded a drop in turnover in hotels and accommodation companies by 51 percent compared to the same month of the previous year, and in gastronomy a decrease by 42 percent.

By the end of April, the industry would have lost more than ten billion euros in sales, the association said. This turnover could not be made up even after the reopening, which was now permitted - on the contrary: "Due to the distance bids, turnover is 50 to 70 percent below the previous year's values". For many bars, discotheques and caterers, there is still "no opening perspective".

Corona virus hits the economy hard - EU Commission praises Merkel government

Update from May 20, 3:35 p.m .: Not only Germany, the whole world economy is groaning under the consequences of the corona pandemic . For the first time, a UN agency fears a step backwards in the “degree of human development” - meanwhile, the EU Commission has praise for the federal government's crisis policy.

Corona outbreaks have consequences: Merkel's government enacts new rules for the meat industry

Update of May 20, 3:30 p.m .: The Federal Government is now serious: Labor Minister Hubertus Heil announced drastic new rules for "meat factories" on Wednesday.

Update of May 20, 11.30 a.m .: The meat industry remains in focus in the corona crisis - now, for once, rather as a victim of developments: The major discounters Aldi Nord and Aldi Süd apparently want to push prices further. The plans have met with harsh criticism and the first boycott calls are already circulating.

Coronavirus: meat manufacturer Tönnies warns Heil against the abolition of work contracts 

Update of May 20, 8:19 a.m .:  After an accumulation of corona infections in slaughterhouses, working conditions with subcontractors and collective accommodation are heavily criticized - and Federal Minister of Labor Hubertus Heil (SPD) had announced stricter rules for the industry and the abolition of contracts for work and higher fines indicated.

The meat manufacturer and head of the supervisory board of Bundesliga club FC Schalke 04, Clemens Tönnies , does not agree with him - he warns against the abolition of work contracts. The Neue Osnabrücker Zeitung reports  , citing a letter from the entrepreneur to Heil. "A general ban on contracts for work in the meat industry would result in massive, structurally negative changes for the agricultural industry," argues Tönnies, according to the information in it.

Meat manufacturer Tönnies Clemens Tönnies is against the abolition of work contracts in the industry.

© dpa / Bernd Thissen

The meat association , meanwhile, presented a five-point program for improvements and warned against banning plant contracts. The dpa reports, however, that work contracts in the meat industry are to be largely banned from next year, referring to a draft that is to be adopted in the Federal Cabinet this Wednesday.

Corona virus: Butcher resumes operations after Corona scandal

Update from May 18, 7:50 p.m .:  The compulsory break lasted a week after a series of employees at the Westfleisch company in Coesfeld in Münsterland had tested positive for Corona. Now the operation should start again on Tuesday as a test. In the first step, however, no pigs would be slaughtered yet. Together with the monitoring authorities , the operation would gradually start up again. The first 1500 pigs are to be slaughtered on Wednesday in a second test phase.

By the end of last week, almost 270 positive coronavirus tests had been carried out on around 1200 employees in Coesfeld . The high number had meant that the loosening in the district only became effective one week late.

Corona crisis: Opel plant in Kaiserslautern produces again

Update from May 18, 6:00 p.m .:  The Opel plants in Kaiserslautern were practically idle for two months due to the corona virus. Now travels Opel , the production gradually back up. "In Rüsselsheim and Eisenach , too , we are gradually preparing for the restart, which will also take place very promptly," wrote Opel boss Michael Lohscheller.

However, demand will set the pace. "We will not build up expensive, additional inventories, but will control them very precisely and in a targeted manner in order to secure our business." In April, corona sales dropped by up to 90 percent.

Coronavirus: Justice Minister warns of new scams and pishing attacks

Update from May 17, 4:26 p.m .:  The Bavarian Minister of Justice Georg Eisenreich (CSU) warned in Munich on Sunday of new fraudulent activities in connection with the corona virus . So-called phishing attacks are increasing online, in which data is tapped, for example when ordering fake vaccines . Even offline, cases have already been registered in which fraudsters at the front door mistakenly pretend to be employees of the health department .

After Albert Füracker (CSU) , finance minister in Bavaria, Hesse's Prime Minister Volker Bouffier (CDU) is now rejecting  Olaf Scholz (SPD) 's proposal for a billion dollar protection shield for municipalities. The CDU budget expert Eckhardt Rehberg accuses Scholz of implementing an "old concept for assuming old municipal debts that previously had no chance of being implemented" in the wake of the corona crisis . 

Essentially, the dispute is about relieving old debts in municipalities, which according to the concept should be carried across the federal states in solidarity. The German city ​​and town council welcomed the proposal.

Coronavirus: Bavaria rejects protective shield for communities

Update of May 16, 5:56 p.m .: Bavaria rejects the plans of the Federal Ministry of Finance for a  billion- dollar protection shield for the municipalities in need due to the coronavirus crisis. The proposal provides for half of the countries to participate in the financing. "Bavaria's Minister Scholz's proposals will in no way take part," said Finance Minister Albert Füracker (CSU) on Saturday at the German Press Agency in Munich. "If the federal government wants to help the local authorities, it is welcome to do so - but a compulsory obligation of the federal states according to the federal rules without consultation is an outrage."

Federal aid in the Corona crisis is desirable, "but only if there is clear coordination with the federal states and no link to the repayment of old debts". Bavaria is firmly on the side of its municipalities and will help them in the crisis. "We prefer payment of two billion euros to the municipalities from the municipal financial equalization to help quickly and effectively," said Füracker.

In the corona crisis , Federal Minister of Finance Olaf Scholz (SPD) wants to set up a multi-billion dollar shield for municipalities and solve the urgent problem of old debts. A concept paper from his ministry provides for an aid package of up to 57 billion euros, half of which the federal and state governments are to provide. "I announced that I would like to make suggestions. I think that is the right time to discuss them now, ”said Scholz on Saturday at the SPD party headquarters, the Willi Brandt House. No time should be lost.

Coronavirus: Further help approved - real estate association sees gigantic crisis coming

Original article from May 15: 

Berlin - Politicians are working flat out to help the weakened economy as much as possible through the corona pandemic  . The Federal Council approved extensive further corona aid on Friday . In addition, Finance Minister Olaf Scholz (SPD) announced that artists and cultural workers should also benefit from the planned stimulus package against the Corona crisis .

The decisions of the Federal Council result in various innovations: Nursing staff receive a bonus. According to the updated short-time work allowance, 70 percent of the lost net wages will be paid from the fourth month onwards . From the seventh month, it is 80 percent. For parents , the benefit increases from 67 to 77 percent. For them, the months with reduced salaries are also omitted when calculating the parental allowance , and the plan to stop continued wages was initially postponed.

Corona crisis: Short-time work is possible up to the limit of the original income

Short-time work has caused discussions in a variety of ways. Now employees on short-time work are allowed  to earn enough from May 1 to the end of the year to reach their full monthly income . However, the Federal Government may extend the duration of short-time benefits * from twelve to 24 months until 2021. For people whose entitlement to unemployment benefit would be exhausted between May 1, 2020 and December 31, 2020, the entitlement period will be extended by three months. Even students and scientists , a doctorate or habilitation just to get relief in their working hours and the student loan rules .

The state also accommodates the cultural and sports business . You can issue vouchers for tickets sold before March 8th . Minister of Finance Olaf Scholz (SPD) may have given hope to the cultural sector , especially the artists. According to him, they should benefit from the new economic stimulus program.

"That must and will be part of the program," Scholz promised. Art and culture are of the utmost importance for living together - their work must therefore be safeguarded. However , Scholz does not want to give details of the planned economic stimulus until early June. However, he made it clear that it should also be aimed at restaurants , hotels and organizers . It is important that the economic stimulus measures act at the right time, for a limited time and in a targeted manner.

Video: Chancellor Angela Merkel pledges help to artists in the corona crisis

Real estate industry sounds the alarm: "the beginning of a gigantic crisis"

In the meantime, new holes keep opening up. The real estate industry is also sounding the alarm. "We are at the beginning of a gigantic crisis," said Andreas Mattner, President of the Central Real Estate Committee (ZIA), the mirror. Retailers would have lost around EUR 30 billion in sales within a month and retail property owners would have lost up to 70 percent of rental income .

Even in May and June, only a partial payment is expected despite the reopening of shops. Nobody could survive such a failure without damage for three months, said Mattner. What will soon be empty is difficult to rent out again in these times. According to the association, the pedestrian zones filled only slowly: the customer frequency in the city centers was 50 to 60 percent below the previous year's value .

Due to the corona crisis, the department store chain Galeria Karstadt Kaufhof now wants to draw drastic consequences. A running shoe chain even has to close all branches in Germany, Austria and Switzerland - which is angry with a politician.

VW is exposed to violent allegations - it is about a commercial that serves racist resentments.

* Merkur.de is part of the Germany-wide Ippen-Digital editors network.