According to a recent study, the German automotive industry is expected to suffer significant job losses in the coming years.
For some time now, the automobile industry has not been in the best shape, and this generally concerns the entire European market. But one country pays an even heavier price than the others. Indeed, by 2035, nearly 190,000 jobs could disappear in Germany, particularly in the automotive sector. This figure, revealed by a recent study, is not surprising for an already fragile sector: since 2019, the automobile industry in Europe has already lost more than 124,500 jobs.
An industry in danger
This situation highlights a deep crisis, fueled by several economic and geopolitical factors, which could continue to worsen, with Germany on the front line. But then, what is this situation due to? Don’t worry, we will obviously explain everything to you in the rest of our article below. In fact, the transition to electric vehicles is often blamed for this situation, but it only tells part of the story. is indeed costly for manufacturers, requiring colossal investments in research and development, and in the conversion of production lines. However, this change is not enough to explain the. 20% drop in sales of vehicles in Europe, which also hits thermal vehicles, whose costs have exploded due to increasing raw material prices and strict new environmental standards.
Many factors
Added to this situation is fierce competition from chinese brands. For several years, German manufacturers like Volkswagen, Mercedes and BMW have focused on the Chinese market, to the point of becoming largely dependent on it. However, this market now seems to be turning away from European brands, which are struggling to compete with local manufacturers like BYD or Geely, offering electric models at more competitive prices. Volkswagen’s recent difficulties are a notable example: the group announced the closure of three factories in Germany, and Audi could close its production unit in Belgium. But other German brands are also experiencing difficulties: Mercedes, for example, recorded a 12% drop in sales over the last six months, and its turnover was halved. Opel, for its part, suffered a 24% drop in sales last September. In France and Italy, the hope of compensating for job losses through the arrival of Chinese manufacturers could also be undermined. Initially, several of these brands planned to invest heavily in Europe to avoid import taxes.
However, on October 10, the Chinese Ministry of Commerce summoned major local automobile executives, including those of Geely, SAIC and Chery, to invite them to suspend all investment in Europe. This decision comes after the European Union decided to triple taxes on vehicles imported from China, in response to the rise of Chinese cars on the European market.
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