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Red alert: 260,000 jobs at risk from electric cars!
VDA President Müller warns of job losses due to electromobility. Urgent political measures for competitiveness needed.
Red alert: 260,000 jobs at risk from electric cars!
The transformation to electromobility presents the automotive industry in Germany with immense challenges. Hildegard Müller, President of the Association of the Automotive Industry (VDA), warns urgently of “significant job effects” that will result from this upheaval. During a lecture during the Ludwig Erhard Summit, she underlined the risks associated with switching to electrically powered vehicles.
Current job cuts and factory closures at major companies such as VW, Bosch, Woco-Group, Schaeffler, Hirschvogel and Ford in Cologne illustrate the drama of the situation. According to a study, up to 260,000 jobs in Germany are at risk if the automotive industry does not adapt adequately to the new circumstances.
Investment and competitiveness
The auto industry is planning to invest a total of around 320 billion euros in research and development over the next four years, in addition to 220 billion euros in capital expenditure. However, Müller emphasizes that Germany is not internationally competitive as a business location and that urgent political measures are required to counteract this. This includes reliably lower energy prices, a competitive tax and contribution system and the reduction of bureaucratic hurdles.
A central aspect of their demands is the need for an active EU trade policy. This should serve to conclude trade agreements and reduce trade barriers. Raw material agreements that are necessary for electromobility – especially for batteries – are particularly crucial.
Value creation and prospects for employees
Müller attaches great importance to maintaining and expanding value creation in Germany. However, the transformation to electromobility means that fewer components are required, which has a direct impact on jobs. In order to cushion the negative effects, she advocates building networks between companies that are looking for workers and those that are questioning jobs.
It is also important to offer perspectives for people in Germany in order to counteract populist parties. Müller calls on business and politics to take responsibility and create the right framework conditions to secure the future of the automotive industry and counteract the job effects. Attention must be paid not only to the quantity of jobs, but also to the quality of future jobs that will be necessary in a changing industry.
The challenges facing the automotive industry are therefore not just a question of jobs, but also affect the entire structure and economic success of Germany in the future.