The German automotive sector reduces jobs as bites of economic woes

The perfect storm from the industry and the economic challenges weighs the car sector in Germany, which has thrown tens of thousands of jobs for a one -year section by the end of June.

During this period the car industry in Germany, one of the largest sectors of the European country, has observed a shortening of workplaces of nearly 7% of the workforce or about 51,500 positions, according to new Analysis EY based on data from the German Destatis statistics office.

The total job loss in the German industry is about 114,000 in the 12th months until June 30 this year, the study notes. The numbers suggest that nearly half of the cuts are made from the vehicle sector.

“No other industrial sector has registered such a strong reduction in employment,” the report said, according to CNBC. The study noted that 112,000 jobs were shortened in the car sector compared to the 2019 period preceding the Covid-19 pandemic.

Jan Brorchillker, managing a partner of the EY department in Germany, said in a press release that the reduction of work was in response to the difficult situation of the German automotive industry.

“The large -scale decline in profits, over -complaint and patient foreign markets make a significant reduction in jobs impossible to avoid,” he said, according to CNBC translation.

The EY report also noted that revenue in the sector retreated by 1.6% in the second quarter of 2025 compared to the same period in the previous year. German car giant Volkswagen, for one, reported A sharp decline in profit from the second quarter and reduced its year -round guidelines.

The decline in the automotive sector is more special a lower drop of 2.1% loss of revenue that the common German industry faces.

German automotive industries have long been fighting many challenges, such as strict Chinese competition for costs and innovation, as well as difficulty winning a place in Electric vehiclewhich some manufacturers of cars and analysts attribute to the bureaucracy and regulation of the federal government.

US President Donald Trump’s trade policy added to fears. Germany, and especially its automotive sector, are highly export -oriented and consider the United States as one of their largest markets, where the label “produced in Germany” is historically regarded as a sign of quality.

Recent Destatis data show that exports of automotive and automotive parts to the United States decreased by 8.6% in the first half of 2025, compared to the same period last year. Automobile manufacturers also repeatedly warn of the potential impact of tariffs and surrounding uncertainty.

Industry can enjoy some relief after Details The US and EU trade agreement appeared earlier this month. Cars will be subject to 15% obligations, but only after the EU makes legislative changes to reduce its industrial taxes.

The overall economy of Germany is also a wind for the automotive sector, with the annual gross domestic product in the country decreasing both in 2023 and in 2024. This year It also seems to be a slow start: since the largest economy in Europe registers 0.3% growth in the first quarter, the last figures for the second quarter show a decrease of 0.3%.

Looking forward, EY’s brorhilker says he expects German car exports to both the United States and China to stay under pressure, the first being influenced by tariffs and the second by weakening demand, which is also an internal issue.

As various German industrial giants are currently undergoing programs to restructure or reduce costs, “the number of jobs in the industry will continue to fall,” Brohrchillker said.