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BERLIN, GERMANY – In what is shaping up to be a bleak future for Germany’s automotive sector, the head of the German Association of the Automotive Industry (VDA) has revealed that the industry is now expected to suffer an additional 35,000 job losses on top of initial forecasts.
The alarming prediction was made by VDA president Hildegard Müller, who warned that a total of 225,000 jobs will be lost by 2035. This stark increase marks a significant escalation from the 190,000 job cuts the VDA had previously forecasted between 2019 and 2035.
Müller cited the industry’s ongoing shift towards electric mobility as a major contributor to the worsening job market outlook. Suppliers to the auto industry are expected to bear the brunt of this transformation, with significant job losses likely to occur as the production of combustion-engine vehicles declines.
In addition to the economic pressures of this transition, Müller highlighted the impact of a “serious and persistent competitiveness crisis” in Germany and Europe on the industry’s prospects. The VDA president noted that about 100,000 jobs had already been lost between 2019 and 2025, further exacerbating the sector’s employment woes.
Industry watchers are growing increasingly concerned about the long-term implications of these developments for Germany and the broader European economy. The country’s automotive sector has historically been a driving force behind its economic growth and exports, and the loss of such a significant number of jobs could have far-reaching consequences for local communities and the national workforce.
While efforts to support the industry’s transition to electric mobility and enhance competitiveness are underway, the VDA’s revised projections have added a note of urgency to these initiatives. As the auto industry continues to grapple with the challenges of this transformation, policymakers and industry stakeholders will need to work together to mitigate the expected job losses and ensure a smoother transition for workers and businesses alike.
The VDA’s revised job loss estimates have sparked renewed debate about the sector’s future and the need for more decisive action to address the challenges it faces. As the European economy navigates this period of significant change, it will be fascinating to see how Germany’s automotive sector evolves and what policies are implemented to support its long-term success.