The German Automotive Industry Association (VDA) forecasts that the industry will lose 225,000 jobs in Germany by 2035, 35,000 more than previously predicted.
‘Unfortunately, based on current calculations, we must assume that 225,000 jobs will disappear by 2035,” said VDA President Hildegard Mueller. “The development is concerning and shows that Germany is facing a serious and persistent competitiveness crisis,” she was quoted as saying by Xinhua.
Previously, the VDA predicted that 190,000 jobs would be lost in the industry between 2019 and 2035.
Mueller also reported that around 100,000 jobs have already been lost in the German automotive industry between 2019 and 2025. Meanwhile, new jobs linked to the transition to climate-neutral and digital mobility are increasingly being created abroad.
Mueller cited the “serious and persistent competitiveness crisis” in Germany and Europe as the main reason for the cuts. Among the industry’s problems, she cited high taxes and fees, expensive energy, and bloated bureaucracy, reports wPolityce. Of course, the ongoing tariff war with the U.S. is another major concern.
In light of the VDA’s new job loss estimates, Mueller has called on the European Commission to adjust their expectations from the auto sector, namely, the conditions laid out in its Automotive Package launched last December.
Regarding plans to only allow battery electric and fuel cell vehicles starting in 2035, the VDA has suggested more leniency for plug-in hybrids, range extenders and combustion engines using renewable fuel to avoid the loss of an estimated 50,000 jobs.
As of May 2026, German auto workers, led by IG Metall at Volkswagen’s IAV, and Ford, are staging strikes and protests against significant job cuts and proposed wage reductions, squarely blaming the sector’s shift to electrification.
