In view of the tense situation, Federal Minister of Economics Robert Habeck is inviting the German automotive industry to a summit. The Green politician has invited people to an exchange on the current situation on Monday, said a spokeswoman for the ministry. The “Bild” newspaper had previously reported on this. In addition to the industry association VDA and the union IG Metall, the largest automobile manufacturers and suppliers are taking part. Further details about the meeting were not initially known.
The German car industry is struggling with weak sales figures, especially for electric cars. Sales of these have recently fallen significantly. As the Ifo Institute found in a survey, the mood among manufacturers is at rock bottom. Measured by sales, car manufacturers are by far the most important industrial sector in Germany.
Report: VW could cut up to 30,000 jobs
Drastic cuts could be on the horizon, particularly at Germany’s largest carmaker, Volkswagen. At the beginning of September, management announced that it would no longer rule out plant closures and redundancies as part of the savings program at the core VW brand.
According to a recent report by “Manager Magazin,” the troubled company could even cut up to 30,000 jobs in Germany in the medium term. The company did not confirm the figure. And the general works council stated: “This figure has no basis whatsoever and is simply nonsense.”
Spokeswoman: VW must save
According to the magazine’s information, CFO Arno Antlitz wants to cut funds for investments to 160 billion euros over the next five years. Most recently, VW had set 170 billion euros for the medium-term planning from 2025 to 2029. The state of Lower Saxony is VW’s second-largest shareholder with 20 percent of the voting rights.
The pressure is obviously so great that far-reaching cuts to the workforce are being discussed. According to “Manager Magazin”, hardliners in Germany are planning to reduce the number of jobs by 30,000 from 130,000 in the medium term. CEO Oliver Blume also considered this to be realistic in the long term in a small circle.
A spokeswoman for Volkswagen AG in Wolfsburg said: “One thing is clear: Volkswagen must reduce its costs at its German locations.” This is the only way the brand can earn enough money for future investments. “How we achieve this goal together with the employee representatives is part of the upcoming talks,” she said. Negotiations between VW and IG Metall will begin on September 25.
IG Metall negotiator at Volkswagen, Thorsten Gröger, says: “If Volkswagen wants to put the axe to the workforce, the employees will give the appropriate response.”
Suppliers also cut jobs
Meanwhile, the crisis is also affecting suppliers. ZF, one of the largest in Germany, announced at the end of July that it would cut up to 14,000 jobs in Germany over the next four years. To do this, the company plans to set up several site networks with leaner structures. Around 54,000 people currently work at ZF nationwide.
On average, the German plants of Volkswagen, BMW, Mercedes & Co. were only operating at just over two-thirds of their capacity last year. This is the result of an analysis by data specialist Marklines for the German Press Agency. The first car manufacturers are drawing conclusions. Ford had already announced in 2022 that it would close the plant in Saarlouis at the end of 2025. At Audi, Brussels is now hanging in the balance. The same fate could threaten the Transparent Factory in Dresden, where VW is now openly considering reusing it without vehicle production.
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