A study commissioned by Germany’s auto industry association VDA reveals that the country’s automotive sector could lose up to 186,000 jobs by 2035 due to the shift toward electric vehicles (EVs), with around a quarter of these losses already realized between 2019 and 2023.
The report, conducted by research institute Prognos and released on Tuesday, attributes the initial 46,000 job reductions to the ongoing industry transition.
The VDA study highlights the competitive challenges facing Germany’s auto sector, pointing to high electricity costs, taxation, and regulatory complexity as factors that are affecting competitiveness.
Major automakers like Volkswagen are reportedly considering significant reductions, with the company’s works council noting potential closures of at least three plants, layoffs of tens of thousands, and further cuts across its remaining facilities.
“The fact is that we need a competitive location with the right political framework conditions so that as much added value and employment as possible remains in Germany and new jobs are also created,” the VDA stated in its report, emphasizing the need for favorable policies to sustain domestic industry jobs amid the EV transformation.
