Electric cars could eliminate 200,000 jobs in Germany

A recent study shows that the transition to electric is likely to have a significant impact on the German automobile industry. Nearly 200,000 jobs could disappear by 2035.

Which jobs are most at risk?

The VDA (Association of the Automotive Industry, the association of the German automobile industry), recently published a study to analyze the evolution of professions in the sector and understand the changes to come. The conclusions are dizzying. Indeed, the massive electrification of the fleet could cause Germany to lose around 200,000 jobs by 2035. A cataclysm for this automobile country.

The authors of the report explain that “ the production of electric vehicles requires fewer jobs overall than in the past “. Those in the fields of mechanics, industrial engineering and metallurgy, for example, have lost their importance. On the other hand, careers in R&D, IT, electronics and software development are increasingly sought after.

To mitigate job losses, the study recalls the importance of continuing training within companies. We must also be able to recruit qualified workers in fields that become more relevant. On this last point, the German automobile industry is doing rather well. In fact, positions in human resources have increased by 36% since 2013.

The political framework can change the face of the automobile industry

Despite this, the employment balance was already negative between 2019 and 2023. If this trend accelerates, the German automobile industry is expected to have 186,000 fewer workers in 2035 compared to 2019. The authors of the report, however, emphasize that 'there exists' great uncertainty as to the real scale of the phenomenon of electrification of the fleet “. Several scenarios are on the table.

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On the one hand, the shortage of skilled labor in certain fields may hamper the growth of electric cars. On the other hand, the political framework can influence, in one direction or the other, the evolution of the industry. For Hildegard Müller, President of the VDA, “ transforming our sector is a mammoth task. German companies and their employees are doing everything they can to make it successful ».

In any case, despite the 280 billion euros that will be invested in R&D and the 130 billion euros put into converting factories, there will be job losses. It's inevitable. Europe is losing more and more of its competitiveness. Electricity prices are up to 3 times higher for German companies than for their international competitors, such as the USA or China.

Financial support to mitigate the effects on employment?

To overcome the wave, the German association is calling for financial support. “ It is the political framework and subsidies that decide whether future investments will take place in Germany, whether the new things that are emerging will be created here with new jobs or elsewhere. These elements can therefore reinforce or attenuate the effects on employment », We can read in the VDA report.

« Competitive energy prices, less overwhelming bureaucracy, rapid planning and approval procedures, a competitive tax system, more free trade agreements… “. The list is long, but the tasks are urgent. The first signs of a crisis in the German automobile industry are already there. Indeed, the Volkswagen group is in great difficulty.

The first signs of a crisis are here

A few days ago, the German giant formalized the end of production at the Audi factory in Brussels. But this may just be the beginning. Several factories in Germany are also threatened. In total, Volkswagen could cut 30,000 jobs over the next few years and abandon several projects.

Also readPorsche backtracks on electric and makes a radical decision

To try to limit the damage, the Wolfsburg company announced the reduction of salaries by 10% and their freeze in 2025 and 2026. The group is seeking to save 4 billion euros. For its part, Mercedes is not in an ideal situation either. The brand has developed a wide range of electric cars but is having difficulty selling them. In the third quarter of 2024, sales fell further.