Crisis in the automotive industry: tens of thousands of jobs at risk!

The economic situation in Germany is tense, especially in the automotive industry. Otto Wiesheu, Honorary President of the Bavarian Economic Advisory Council, made it clear that the country has not recorded any economic growth for five years. Management errors and political guidelines are cited as the main causes of the current crisis, which have also led to uncertainty in the market. The promotion of electric cars, a central issue, remains unclear and contributes to consumer reluctance.

In the past three years, the industry has lost around 100,000 jobs annually. Particular effects can be observed in Bavaria, where a high number of bankruptcies are reported. Export-oriented companies face major challenges that are exacerbated by geopolitical upheavals. While there used to be good trade relations with countries of the former Eastern Bloc and Russia, new markets such as Africa and South America remain insufficiently developed. Wiesheu calls for increased cooperation between politics, companies and unions in order to master economic challenges together.

Impact on the automotive industry

The auto industry is battling significant challenges, manifested by frequent restructuring, plant closures and job cuts. The Ifo Institute reports that sentiment in the industry is at an all-time low. The sentiment barometer fell to -32.1 and shows that companies are pessimistic about the future. Loud Car Motor and Sport ZF Friedrichshafen AG has considered the spin-off of its E division, which affects over 32,000 employees.

Companies like Gerhardi Kunststofftechnik have filed for bankruptcy, while Opel is cutting production and VW is facing massive strikes against austerity plans. Other major car manufacturers, such as Ford and Audi, are also planning significant job cuts. Ford announced it would cut 4,000 jobs in Europe, and Schaeffler AG plans to cut around 4,700 jobs, including 2,800 in Germany. The industry is continually reporting declines in sales, while at the same time some companies are paying out high dividends, such as Volkswagen, which paid out 4.5 billion euros to investors despite the crisis.

In summary, it can be seen that both the overall economic conditions and the specific challenges of the automotive industry lead to a worrying situation in which uncertainty is increasing and many employees fear for their future.