German automotive workers are taking to the streets as the country’s car industry faces a deepening crisis. IG Metall said more than 100,000 people were expected to take part in nationwide protests on Monday, with more than 280 actions planned at around 100 union offices across Germany. The union is demanding action to protect jobs, factories and the country’s industrial base.
The protests come as German carmakers face growing competition from China, weak demand, US tariffs and pressure on profit margins, particularly in the electric vehicle market. Volkswagen, Mercedes-Benz and BMW are all downsizing. Volkswagen plans to cut around 100,000 jobs by the end of the decade as part of the biggest restructuring in the global automotive industry. The future of some production sites is also under pressure.
At Volkswagen’s main plant in Wolfsburg, IG Metall leader Christiane Benner criticised what she described as inadequate industrial policy in Germany and Europe. She called for stronger protection against unfair competition from China, more effective EU subsidies and lower electricity costs for industry.
Benner also called for support for suppliers that need to adapt their production and urged policymakers to strengthen domestic manufacturing through measures such as “Made in EU” rules. She rejected attempts to weaken workers’ rights, including collective bargaining protections and the 35-hour working week. Instead, she called for companies to prioritise investment over dividends and said savings could be found in areas including management structures, product complexity and bureaucracy.
The future of Volkswagen’s Hanover plant was a particular focus of the protests. At a rally in Hanover, Benner said IG Metall would fight to preserve the site, which is facing the threat of closure. “Hanover without VW is like summer without sunshine,” she said, while also calling on Volkswagen’s management to address the company’s problems.
VW works council chief Daniela Cavallo called for EU tariffs on Chinese hybrid vehicles, arguing that the current system leaves a gap in protection for European manufacturers. She also demanded a stronger EU-wide subsidy policy. Cavallo said the burden of restructuring should not fall solely on employees. Shareholders should also be prepared to give up part of their returns so that more money can remain in companies and help finance the costly transformation of the industry.
Cavallo warned that Europe’s automotive industry will undergo major changes, with some established manufacturers potentially disappearing or merging. “The battle over how to share the burden has already begun,” she said, arguing that the key question was how the sacrifices required during the transformation could be distributed fairly.
IG Metall says the nationwide action is intended to send a signal in favour of secure jobs, sustainable production sites and a strong industrial base. The union has also called for investment in future products, employee training and production sites rather than short-term cost-cutting.
The German auto industry is facing several challenges at the same time. Chinese manufacturers have increased their presence in global markets, while German companies are dealing with weak demand, US tariffs and low margins on electric vehicles. Some industry representatives have also pointed to Germany’s high labour and energy costs and its relatively short working hours compared with other countries as competitive disadvantages.
Hildegard Müller, head of the German Association of the Automotive Industry, called for greater willingness among employees to accept changes. She argued that high labour costs and shorter working hours were significant disadvantages for German manufacturers.
Employer representatives have also criticised IG Metall’s approach. Oliver Barta, head of the employers’ association for the metal and electrical industry in Baden-Württemberg, accused the union of making excessive and highly polemical accusations. He said Germany had a serious cost problem that required action from policymakers and employers and employees.
A recent analysis by consultancy EY underlined the scale of the challenges facing Germany’s major carmakers. Volkswagen, BMW and Mercedes have recorded falling revenues, declining profits and shrinking margins despite growth in the global automotive market. EY expert Constantin Gall pointed to high wages, energy prices and bureaucracy as factors affecting the industry’s profitability. He argued that necessary changes were not being implemented consistently enough in Germany.
The debate comes as the industry undergoes a costly transition towards electric vehicles and greater investment in software. Critics of management argue that German manufacturers moved too slowly on both fronts, while others point to Chinese government support for domestic carmakers and what European industry representatives describe as excess capacity in the global market.
German Finance Minister Lars Klingbeil has called for stronger European protection against Chinese competition, saying Europe should not be “naive” about the challenges facing its car industry.
The protests are unusual because they are not centred on a specific wage dispute or individual company conflict. Wolfgang Schroeder, a political scientist at the University of Kassel and former state secretary at the Federal Labour Ministry, described the nationwide mobilisation as an expression of particular concern about the future of the industry.
IG Metall is also preparing to set its wage demands for the wider metal and electrical industry this week, with regional demands due to be announced before the union adopts its central position. For Germany’s automotive workforce, the protests reflect a wider dispute over who should bear the cost of the industry’s transformation — and how the country can protect industrial jobs while its carmakers adapt to a rapidly changing global market.
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