German Auto Industry Sheds 42,300 Jobs as China Pressure Cuts Profits
Updated
Updated · South China Morning Post · Aug 17
German Auto Industry Sheds 42,300 Jobs as China Pressure Cuts Profits
3 articles · Updated · South China Morning Post · Aug 17
Summary
42,300 jobs disappeared from Germany’s automotive industry in the year to June, a 5.8% drop that pushed employment to its lowest level since 2005.
Falling profits in China and intensifying competition from Chinese brands in Europe drove the cuts, with Volkswagen reporting a roughly 30% first-half net profit drop and Mercedes-Benz lowering its annual sales forecast.
4.2 million passenger cars a year are now produced in German plants, down from about 6 million a decade ago, leaving roughly 30% excess capacity as the shift to EVs squeezes margins and suppliers.
150,000 to 200,000 vehicle exports to China have been lost versus 2019, mostly high-margin Porsche and Mercedes models, while profits from Chinese joint ventures have also weakened.
144,100 manufacturing jobs were lost across Germany over the same period, and industry economists warn the auto sector’s China exposure, overcapacity and EV transition could bring deeper cuts.