16:06 - 14.08.2026

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August 14, Fineko/abc.az. According to data released by the Federal Statistical Office (Destatis), employment in Germany's automotive sector has dropped to its lowest level in over two decades as carmakers cut costs to counter rising pressure from Chinese competitors.

Total headcount across major manufacturers such as "Volkswagen", "BMW", and "Mercedes-Benz Group" fell by 5.8% (42,300 workers), reaching its lowest point since 2005. This contraction rate is more than double the average decline seen across the broader industrial sector.

Key Challenges:

• Fierce global competition from Chinese EV makers and weak performance in the Chinese market;

• Abnormally high domestic production costs;

• Lowered earnings forecasts across major German auto brands.

Notably, "Volkswagen" is evaluating plans to cut up to 100,000 jobs in Germany and close several manufacturing facilities. As of the end of June, the automotive industry employed 691,500 people, maintaining its position as Germany's second-largest industrial employer after machinery manufacturing (over 900,000 employees).