Job Losses in German Car Industry

BERLIN (Reuters) – The transformation of the German car industry could lead to 186,000 jobs losses by 2035, with roughly a quarter already lost, a study commissioned by the VDA auto industry association revealed on Tuesday.

The 46,000 jobs lost between 2019 and 2023 were mainly due to the shift toward electric vehicles, according to the study conducted by research institute Prognos.

The VDA's report highlights the loss of competitiveness in Germany, influenced by high electricity prices, tax rates, and increasing bureaucracy.

Volkswagen (ETR:VOWG_p) is considering shutting at least three factories in Germany and laying off tens of thousands of employees, according to the company's works council.

"The fact is that we need a competitive location with the right political framework so that as much added value and employment as possible remains in Germany, while also creating new jobs," VDA stated in the report.