German Chancellor Olaf Scholz recently made it clear thatClosing the plant would be a mistake for Volkswagen, stressing that as Europe's largest carmaker, Volkswagen has a responsibility to its employees.Volkswagen is currently in a bitter conflict with employees over plans to cut wages and possibly close factories, measures aimed at combating high costs in Germany and stiff competition from Asian rivals.

Scholz believes that closing the factory is not the right thing to do because poor management decisions are the root cause of the current predicament.

The governor of the German state of Lower Saxony, Volkswagen's second-largest shareholder, also shares the same stance as Scholz, urging the Volkswagen Group to avoid closing factories.

The two sides plan to hold a fourth round of talks next Monday to resolve the dispute.