Electrification Could Cost Almost 200,000 German Auto Jobs By 2035

German Automakers Face Major Job Losses As Industry Electrifies

The transition to electric vehicles (EVs) could cost the German auto industry almost 200,000 jobs by 2035, according to a new study by the Center for Automotive Research (CAR). The study, which was commissioned by the German Association of the Automotive Industry (VDA), found that the shift to EVs will lead to a decline in demand for traditional internal combustion engine (ICE) vehicles, which will in turn lead to job losses in the manufacturing, assembly, and supply chain sectors.

Study Highlights Job Losses in Key Auto Manufacturing Regions

The study found that the job losses will be concentrated in the regions of Baden-Württemberg, Bavaria, and Lower Saxony, which are home to major automakers such as Daimler, BMW, and Volkswagen. These regions are particularly vulnerable to job losses because they have a high concentration of ICE vehicle production. The study also found that the job losses will be disproportionately felt by lower-skilled workers, who are more likely to be employed in the manufacturing and assembly sectors.

Government Support Needed to Retrain Workers and Support Transition

The VDA has called on the German government to provide support to the auto industry as it transitions to EVs. The association has proposed a number of measures, including retraining programs for workers who are displaced by the transition to EVs, and financial assistance for companies that are investing in EV production. The VDA has also called for the government to accelerate the deployment of charging infrastructure, which is essential for the adoption of EVs.

Industry Transition to EVs Faces Challenges

The transition to EVs is a major challenge for the German auto industry, which is heavily reliant on ICE vehicles. However, the industry is also facing other challenges, such as the rise of ride-hailing services and the increasing popularity of car-sharing. These challenges are putting pressure on traditional automakers to adapt and innovate. The transition to EVs is an opportunity for the German auto industry to reinvent itself and remain competitive in the global market.