The automotive industry in Germany is in a deep crisis, with estimates of 225,000 layoffs by 2035

The German automotive industry, a pillar of the national economy, is facing a major crisis, with estimates of over 225,000 layoffs by 2035. Authorities in Berlin and the German Association of the Automotive Industry (VDA) warn that, after the loss of approximately 100,000 jobs between 2019 and 2025, another 125,000 will be eliminated due to the accelerated transition to electromobility and the decline in orders for internal combustion engine components.

VDA President Hildegard Müller acknowledged that forecasts have been revised upwards, highlighting the severe impact on supplier companies. Those that depend on the production of parts for classic engines are facing declining orders and pressures for restructuring.

The costs of the energy transition, competition from China, and the decline in Europe's competitiveness amplify the difficulties. Companies need to invest billions in the development of electric vehicles, and restructurings require staff reductions. VDA estimates that the structural changes in the industry are irreversible, and the next ten years will mark a profound economic transformation in Germany.