German Auto Industry Faces Job Cuts Amidst Ongoing Crisis

Nearly 19,000 jobs were lost in 2024 as the sector grapples with weak demand, high costs, and challenges in transitioning to electric vehicles.

A study by EY reveals that the German auto industry shed approximately 19,000 jobs in 2024, reducing total employment to 761,000 workers.
Key challenges include weak demand, high costs, and the dual production of combustion and electric vehicles, which have strained profitability.
Investments in electric mobility have yet to yield expected market successes, while the declining Chinese market has added further pressure.
Experts predict more significant job cuts in the coming years, with potential shifts in production to the U.S. or China accelerating the trend.
Major manufacturers and suppliers, including Mercedes-Benz, VW, and Bosch, have announced cost-cutting measures and workforce reductions.