50,000 JOBS GONE! The EV Transition Is CRUSHING Germany’s Auto Manufacturing Industry!
China is most certainly taking over the automotive industry. If you do not believe me, I’ve been saying this for four years now, then this information will surely change your mind. In Germany, 50,000 jobs have been lost this year. In the first 10 months of this year alone, 50,000 jobs have been lost in the automotive industry. Hello, my friends. Welcome to the channel. I’m Sam Evans. You’re watching the Electric Viking. Great to have you with us. The automotive industry is the largest employer in Germany by a pretty wide margin. Figures from the Federal Statistical Office in Germany illustrate the extent of the structural change in the industry. No other major industry is cutting more jobs. And to be honest, in manufacturing in Germany, everyone is cutting jobs. It’s a crisis. But the automotive industry is easily the worst in the worst situation. The crisis in the German auto industry is leaving clear marks on the labor market. At the end of the third quarter of 2025, there were 48,700 fewer people employed in the automotive industry than one year earlier. A decline of 6.3%. Right? That’s in around actually around 10 months. This is according to current data from the federal basically from the government themselves. No other major industrial sector with more than 200,000 employees has reduced its workforce by as much during this period. With a total of 721,400 employees, the industry has reached its lowest level since the second quarter of 2011, 14 years ago, when the number was 718,000. Despite the losses, the automotive industry remains the second largest industrial sector in Germany. Only mechanical engineering ranks higher, employing approximately 924,000 people. mechanical engineering, right? Obviously, a lot of those mechanical engineers are employed in some measure either directly or indirectly in the auto industry. With Bosch and ZF, the supplier crisis has reached a new level. Suppliers, they are cutting back the most within the automotive industry. The figures show a clear imbalance. While manufacturers reduce staff relatively moderately, suppliers are being hit much harder. But remember manufacturers, they are hamstrung by unions. Unions are basically making it very difficult for the major manufacturers to get rid of stuff. For example, Mercedes-Benz, they’ve had to offer enormous pay packages of basically $500,000 plus dollars to employees to get them to leave. Manufacturers of motor vehicles and engines have 446,800 employees, which is down 3.8%. Body and trailer manufacturing 39,200 employees down 4%. Manufacturers of automotive parts and accessories 235,000 employees down 11.1%. So that’s the sector that’s being hit the hardest right now, but that could change in the future. Other supplier sectors outside the narrowly defined automotive industry such as the manufacturers were explicitly not included in the data. So this is not really the entire automotive industry. It’s just a segment of it. The downward trend though is not limited to the auto sector in Germany. In Germany there’s an enormous crisis in terms of their economy and I don’t know why but we aren’t hearing about this. Several other major industrial branches have also reported big reductions in employment so far this year. Metal production and processing which supplies the automotive industry down 5.4%. Manufacturer of data processing, electronic and optical products, some of those supply the automotive industry down 3%. Plastics industries down 2.6%. Manufacturer of metal products also supplies the automotive industry down 2.6%. Mechanical engineering down 2.2%. Manufacturing sector overall down 2.2%. And this is a trend that’s um been continuing now for several years. Chemical industry down 1.2% and manufacturer of electrical equipment down 0.4. Four. These figures underlined the broader industrial slowdown taking place across Germany driven by high energy costs, global competition. Of course, global competition is a huge part of the problem here. Supply chain restructuring and the transition toward electric mobility. The more EVs we buy, the more Germany loses out. That’s unfortunately for Germany sort of a problem of their own making. They could have been at the forefront of this, but they decided it was more important to make instant today profits. Let’s focus on profits for today. Don’t worry too much about the future. The job reductions are a big issue because based on Volkswagen, Mercedes, and other announced job cuts, there’s going to be much more to come. My solar and batteries, I’ve got a 50 kWh battery here, and I’ve got a big solar array. So, I pay $0 for electricity. That’s including charging my electric car. Reync Solar is the company that I used. I’ll put a link to them in the description below. Job reductions announced earlier this year by major automakers Volkswagen, Mercedes-Benz, BMW, and numerous tier 1 suppliers indicate that the decline in industrial employment is likely to continue into 2026 and well beyond. There’s going to be a second wave of layoffs in 2026. Many of the restructuring programs announced by major manufacturers span a number of years. As they begin to take effect, Germany will experience an additional 20 to 30,000 automotive job losses through 2026 alone. That’s directly from the car manufacturers, not including all the other other sectors. And this is particularly as combustion engine lines are phased out. As they’re phased out, you’re going to find more factories will shut down. Suppliers will continue to shrink faster than manufacturers. Though the shift to EVs dramatically reduces demand for components like exhaust, pistons, crankshafts, injection systems, honestly, hundreds of things, transmissions, fuel tanks, the list goes on and on and on. Without rapid diversification, traditional suppliers will face an additional 8 to 12% reduction in employment over the next 2 years. And that’s really conservative numbers. It could be even worse. Point three here guys is EV related growth will not fully offset losses. Expansion battery production to be honest most batteries being produced by China today. Power electronics and automotive software will create new jobs to some degree. But those fields are far more automated, requiring fewer workers, and a lot of that stuff is made in China. Now, current projections suggest these growth areas might replace at best 1/3 of traditional manufacturing jobs being lost. And that’s pretty bad news for the labor force. Now, not to mention the fact that, you know, we’ve got automakers and big companies now working on humanoid robots and investing massive sums of money into taking a big slice of that human labor market. Point four here, regional job concentration will deepen. German states heavily dependent on legacy engine production including Bon Wartenberg, Lower Saxony, Bavaria and Sland may see above average unemployment increases. In fact, they certainly will. By contrast, EV focused regions such as Brandenburgg, Saxony, and parts of NRW may may see modest job growth, but it will be pretty modest. Point five here. German industry could fall below 650,000 auto jobs by 2027, shrinking. It’ll it’ll certainly shrink to its smallest its smallest size ever next year. By the end of next year, the German automotive industry will be a shell of itself compared to what it was a couple of years ago. Current trends will persist and if they do, the automotive workforce will shrink to levels not seen for many decades. combined with parallel job losses in metalwork, chemical production, plastics, and electronics, analysts warned that Germany faces a long-term erosion of complete industrial competitiveness unless it accelerates investment in batteries, semiconductors, renewable energy, AI integration, and advanced manufacturing. Is all that going to happen? Probably not. Here’s the other problem, guys. It’s too expensive. German employees, many of them don’t turn up to work very often. It’s a big problem. And I’m not saying that all of them are like this. They’re certainly not. Many of them are great, but many of them are taking advantage of union deals and sort of interesting situations here. Mercedes-Benz CEO and numerous CEOs have mentioned this is a problem. And Tesla have said this as well. A lot of employees, they just don’t see them for a month. They don’t know why. And the truth is as well that labor costs are quite high in Germany. It’s much more expensive to make a car in Germany than what it is even in the United States. And of course, it’s much cheaper to make a car in China than in the United States. So, it gives you an idea of just how things are changing. Europe will lose a lot of its manufacturing base over the next 10 years. This will be huge and I think it’s going to hit them much harder than they realize. Thanks for watching.
50,000 JOBS GONE! The EV Transition Is CRUSHING Germany’s Auto Manufacturing Industry!
Germany’s EV transition is accelerating—but at a severe cost. As automakers slash production, restructure factories, and shift to electric platforms, more than 50,000 jobs are disappearing across the country’s once-dominant auto industry. The upheaval is fueling nationwide anxiety as workers, unions, and suppliers scramble to survive the rapid technological shift.
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