October 30, 2024 – According to a recent study published by the German Association of the Automotive Industry (VDA) on Tuesday, the transformation of the German automotive industry could potentially result in the loss of up to 186,000 jobs by 2035, with approximately a quarter of those positions already eliminated.
The study, conducted by Prognos on behalf of the VDA, revealed that between 2019 and 2023, 46,000 jobs had already disappeared primarily due to the shift towards electric vehicles.
In its report, the VDA emphasized that Germany’s competitiveness is being undermined by high electricity prices, tax levels, and escalating administrative costs. “The bottom line is that we need a competitive manufacturing base with a favorable policy environment to ensure that as much value creation and employment as possible remains in Germany, driving the creation of new jobs,” the report stated.
Meanwhile, employment opportunities in the field of automotive engineering in Germany have increased, particularly in manufacturing, technology research and development, computer science, electrical engineering, and software development. For instance, IT positions in the automotive sector have risen by approximately 25% since 2019 and by 85% since 2013.
Earlier today, Hildegard Müller, the president of the VDA, issued a statement strongly opposing the European Union’s proposed tariffs on electric vehicles imported from China. Müller argued that such measures signify a retrogression in global free trade and could negatively impact Europe’s prosperity, employment, and economic growth. She further warned that these tariffs could escalate trade conflicts and ultimately harm the entire industry.
