225,000 jobs on the Line as Germany’s EV Push Hits Auto Suppliers
Synopsis
Germany auto industry groups warned that up to 225,000 jobs could disappear by 2035 as electric vehicle production reshapes manufacturing and supplier networks. The warning comes as global carmakers review factory operations, rising costs and workforce levels during the transition away from combustion-engine vehicles.
Germany auto industry groups warned 225,000 jobs remain at risk as electric vehicle production reshapes automotive manufacturing networks.
Key Highlights
- Germany auto industry warned 225,000 jobs could disappear by 2035.
- Around 100,000 German automotive jobs have already been lost since 2019.
- Supplier companies linked to combustion engines face the largest employment risks.
- Industry groups cited rising costs and EV transition pressures across manufacturing networks.
German auto industry warned that up to 225,000 jobs could disappear by 2035 as carmakers and suppliers face pressure from the shift to electric vehicles, rising production costs and stricter emissions rules across Europe.
The latest estimate from the German Association of the Automotive Industry (VDA) adds another 125,000 jobs to earlier forecasts. Around 100,000 jobs have already been lost in the German auto industry since 2019, according to industry data released alongside a Reuters report published May 13.
Supplier Pressure Spreads Beyond Germany
The warning comes as global carmakers continue restructuring operations to manage slowing demand growth, high manufacturing costs and increased competition in electric vehicles.
Germany remains Europe’s largest car manufacturing hub and a major supplier market for global automakers. Countries including Slovakia, Hungary and the Czech Republic remain closely tied to German production networks through parts manufacturing and assembly operations.
The VDA-Prognos employment study released in late 2024 estimated that roughly 186,000 automotive jobs could disappear by 2035 as the industry moves away from combustion-engine vehicles. Suppliers linked to engines, transmissions and metal components are expected to face the biggest impact because electric vehicles use fewer moving parts.
EV Competition Intensifies
The German auto industry is also facing growing pressure from Chinese electric vehicle manufacturers, including BYD and Geely, while established automakers across Europe continue reviewing factory costs and workforce levels.
Industry groups say high energy prices, labour expenses and taxes are weakening Germany’s manufacturing competitiveness. Current European Union rules require all newly registered cars and vans sold from 2035 to be zero-emission vehicles.
The VDA said broader acceptance of plug-in hybrids and renewable-fuel combustion engines could help preserve around 50,000 jobs currently considered at risk.
Factory Jobs Under Scrutiny
Germany's auto industry employed about 773,000 people during the first half of 2024, making it one of the country’s largest industrial employers.
The latest warning adds to wider concerns across global manufacturing markets, where automakers and suppliers are reassessing investments, factory output and supply chains during the transition toward electric vehicle production.
FAQs
Q1. Why is Germany’s auto industry warning about job losses?
Industry groups say the shift to electric vehicles and rising production costs are reducing demand for traditional auto manufacturing jobs.
Q2. How many jobs could disappear in Germany’s car sector by 2035?
The German auto industry association estimates up to 225,000 automotive jobs could be at risk by 2035.
Q3. Which parts of the auto industry are most affected by the EV transition?
Suppliers producing combustion-engine components, transmissions and mechanical parts are expected to face the biggest impact.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
