Germany’s automotive sector is facing a serious crisis as companies reduce investments and jobs domestically while moving resources abroad. A survey by the VDA automotive association shows that 72 per cent of firms plan to cut back on investments in Germany. Of these, 28 per cent are shifting investments overseas, 25 per cent are postponing them, and 19 per cent are cancelling them altogether.
The survey covered 124 companies, including suppliers and mid-sized manufacturers of trailers and buses. It revealed widespread workforce reductions: nearly two-thirds of firms cut jobs in Germany last year, with 87 per cent citing competitive disadvantages. Currently, 49 per cent of companies are reducing jobs domestically, compared to just 7 per cent cutting positions abroad.
VDA President Hildegard Mueller warned that this migration of investment and employment threatens Germany’s prosperity and social stability. She criticised the EU’s support package for carmakers transitioning to electric vehicles, arguing that regulatory obligations are insufficient and that market-driven incentives are needed.
Employers in the sector are calling on both Berlin and Brussels to introduce measures that stimulate growth and strengthen competitiveness. The industry fears that without decisive action, Germany’s position as a leading automotive nation could erode further.
The findings underline the scale of the challenge: declining domestic investment, significant job losses, and growing reliance on overseas operations. The crisis highlights the urgent need for policies that balance environmental goals with economic sustainability, ensuring that Germany’s auto industry remains globally competitive while safeguarding jobs at home.