German autos sector slashes jobs as economic woes bite

German autos sector slashes jobs as economic woes bite

A general view of production lines at the Mercedes-Benz assembly plant on June 4, 2025 in Rastatt, Germany.

Florian Wiegand | Getty Images News | Getty Images

A perfect storm of industry and economic challenges have weighed on Germany’s autos sector, which has shed tens of thousands of jobs over a one-year stretch to the end of June.

Over that period, Germany’s autos industry, one of the European country’s largest sectors, has seen job cuts of close to 7% of the workforce, or around 51,500 positions, according to new

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Recent data from Destatis showed that auto and auto part exports to the U.S. declined by 8.6% in the first half of 2025, compared to the same period last year. Auto makers have also repeatedly warned of the potential impact of tariffs and surrounding uncertainty.

The industry may enjoy some relief after details of the U.S-EU trade agreement emerged earlier this months. Autos will be subject to 15% duties, but only after the EU makes legislation changes to reduce its industrial levies.

The state of Germany’s overall economy has also been a headwind for the autos sector, with the country’s annual gross domestic product declining in both 2023 and 2024. This year also appears to be off to a slow start: after Europe’s largest economy recorded 0.3% growth in the first quarter, the latest figures for the second quarter indicated a 0.3% decline.

Looking ahead, EY’s Brorhilker says he expects German auto exports to both the U.S. and China to stay under pressure, with the former being impacted by tariffs and the latter by weakening demand, which is also a domestic issue.

As various German industrial giants are currently undergoing restructuring or cost reduction programs, “the number of industry jobs will keep falling,” Brorhilker said.

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