German autos sector slashes jobs as economic woes bite

A perfect storm has been affected by industry and economic challenges in the auto sector in Germany, which threw tens of thousands of jobs over one year until the end of June.

During that period, the auto industry in Germany, one of the largest sectors of the European country, witnessed discounts in jobs less than 7 % of the workforce, or about 51,500 jobs, according to New analysis From EY based on data from the German Statistical Office Destatis.

The study indicated that the total job losses throughout the German industry amounted to about 114,000 in 12 months until June 30 this year. The numbers indicate nearly half of the cuts incurred by the auto sector.

The report said, according to the translation of CNBC: “No other industrial sector has recorded a strong decrease in employment,” the report said, according to CNBC. The study showed that 112,000 jobs were reduced in the automotive sector, compared to the 2019 period that preceded the Covid-19 pandemic.

Jean Brehiriller, the administrative partner of the Ey Security Department in Germany, said in a press statement that the reduction of jobs came in response to the difficult situation of the German auto industry.

He said, according to CNBC translation:

The EY report also indicated that revenues in the sector decreased by 1.6 % in the second quarter of 2025 compared to the same period in the previous year. German car giant Volkswagen, for one, I mentioned A sharp decrease in profit in the second quarter and lower the entire year’s instructions.

The car sector decreased is a 2.1 % smaller decrease in the revenue facing the German industry.

The auto industry in Germany has long fought many challenges, such as the flagged Chinese competition for costs and innovation, as well as difficulties in obtaining a ground in Electric vehicle raceWhich attributed some car makers and analysts to bureaucracy and government government organization.

The commercial policy of US President Donald Trump added fears. Germany, especially its car sector, is directed towards export significantly and the United States is calculated as one of its largest markets, as the “made in Germany” mark has been considered a sign of quality.

Recent data from Destatis showed that automatic parts and cars exports to the United States decreased by 8.6 % in the first half of 2025, compared to the same period last year. Car makers have repeatedly warned of the potential impact of definitions and surrounding uncertainty.

The industry may have some comfort yet details The Trade Agreement in the United States and the European Union appeared earlier this month. Cars will undergo 15 % duties, but only after the European Union makes legislative changes to reduce industrial fees.

The general economy in Germany was a contrary to the auto sector, as the annual GDP in the country decreased in 2023 and 2024. this year It also looks at a slow start: after the largest economy in Europe recorded 0.3 % in the first quarter, the latest numbers for the second quarter indicated a 0.3 % decrease.

Looking forward, BRORHILKER says from Ey he expects German car exports to both the United States and China will remain under pressure, as the first is affected by definitions and the last by weakening the demand, which is also a local issue.

“Since many German industrial giants are currently subject to restructuring or cost reducing programs,” the number of industry functions will continue to decrease. “