Automotive industry workers are protesting in Germany to protect factories and jobs

Employees of Volkswagen, Mercedes-Benz Group, BMW, Audi, Porsche, and major automotive suppliers will take part in protests organized at more than 280 locations across Germany. The IG Metall trade union is calling for factories and jobs to be protected, energy costs to be reduced, and measures to defend domestic production against cheap imports.

The protests are taking place amid growing pressure on the German automotive industry. Volkswagen has lowered its estimate for its operating profit margin to no more than 1%, from at least 4%, citing difficulties in the Chinese market, restructuring costs, and a six-billion-euro impairment associated with Porsche.

IG Metall regional leader Thorsten Groger said that workers must not pay for management's mistakes over the past few years. Volkswagen CEO Arno Antlitz warned that the changes in the market are profound and long-lasting.

According to the VDA, the German automotive industry has lost approximately 100,000 employees since 2019, and further cuts are expected. Volkswagen's plans could affect around 100,000 jobs worldwide, BMW is eliminating approximately 8,000 positions, and Mercedes-Benz is scaling back its production in Germany. Component suppliers have, in turn, lost approximately 74,000 jobs.

The crisis is being fueled by higher energy costs, the slowdown of the Chinese economy, competition from local manufacturers such as BYD, trade barriers in the United States, and the costly transition to electric vehicles.