Germany’s automotive industry could shed another 125,000 jobs by 2035, the country’s main car lobby warned Wednesday, urging the European Union to take a more technology‑neutral approach to future vehicle rules.
The German Association of the Automotive Industry (VDA) said employment in the sector is projected to fall by 225,000 positions between 2019 and 2035. About 100,000 jobs have already disappeared since 2019, and a further 125,000 are expected to go in the coming decade.
The group said the outlook has worsened since its 2024 forecast with consultancy Prognos, citing weak investment conditions in Germany, rising global competition and the shift of new climate‑neutral and digital‑mobility jobs to other countries. Structural changes in the supplier industry are also weighing on employment.
“This development is concerning and shows that Germany is facing a persistent crisis,” VDA President Hildegard Mueller said, pointing to high taxes, energy prices and labor costs as key factors eroding industrial competitiveness.
Under current EU rules, only battery‑electric and hydrogen fuel‑cell cars and vans may be newly registered from 2035. The VDA said that policy alone puts roughly 50,000 German jobs at risk.
The association argued that allowing a broader mix of technologies — including plug‑in hybrids, range extenders and combustion engines running on renewable fuels — could preserve around 50,000 positions.
It urged the European Parliament and EU member states to build more flexibility into the European Commission’s Automotive Package during upcoming negotiations.