Automotive Industry in Germany Faces 225,000 Job Losses by 2035

Newsworm
Newsworm
with
AFP
May 13, 2026
Germany's automotive industry association now expects 225,000 job losses by 2035, an increase of 35,000 from earlier projections. Association President Hildegard Müller attributes this to a severe location crisis in Germany and Europe, with suppliers bearing the brunt due to the shift from combustion engines to electric mobility. Policy changes could preserve 50,000 jobs, she argues.
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Automotive Industry in Germany Faces 225,000 Job Losses by 2035
The German Association of the Automotive Industry (VDA) anticipates even greater job losses in the German automotive industry than previously expected. A loss of 225,000 jobs is projected by 2035. - AFP

The German Association of the Automotive Industry (VDA) anticipates significantly larger job cuts in the German automotive sector than previously estimated. "We must unfortunately expect an employment loss of 225,000 jobs by 2035 based on current calculations," VDA President Hildegard Müller told the Redaktionsnetzwerk Deutschland (RND, Wednesday editions). This represents "approximately 35,000 more jobs than previously assumed."

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Suppliers Face Steepest Job Losses

The impact will be felt most acutely among supplier companies, "because on the path from combustion engines to electric mobility, many jobs will be lost particularly in the supplier industry," the VDA chairwoman further told RND. Müller identified "a serious and persistent location crisis" in Germany and Europe as the underlying cause of this development.

"And the conditions are deteriorating noticeably," she added. "High taxes and levies, expensive energy, high labor costs, excessive bureaucracy – the list of challenges could be continued."

EU Policy Changes Could Save 50,000 Jobs

To preserve significantly more jobs in the German automotive industry, the VDA chief considers a change in EU policy direction necessary. Müller advocated for "flexibility and technology openness on the path to climate neutrality." This approach would "preserve approximately 50,000 jobs at locations in Germany."

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