Nokia in Bochum Episode 3

Don’t mess with the Germans.

Despite countrywide calls for a boycott of Nokia products and a meeting with a delegation of union leaders, CEO Olli-Pekka Kallasvuo made an executive decision to close a manufacturing plant in Bochum several weeks ago.

And now it’s time for the backlash: the German government made its executive decision and demanded 41 million euros (about $60 million US dollars) in subsidy repayment. The subsidies were given to Nokia from 1998-1999 and required that Nokia, among other things, keep a minimum number of jobs. Of course, since the jobs are all gone that agreement just isn’t happening.

Other German government officials also wanted a repayment for another 10 million euros in research funds.

The Espoo, Finland-based company said it was “astonished” and that attempts to reclaim subsidies was “without merit.” “Nokia not only fulfilled the conditions of the agreement, it exceeded them,” it said.

Nokia Subsidy Payback Sought in Germany

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