Baden-Württemberg's auto industry on the brink: 66,000 jobs at risk!

Baden-Württemberg's auto industry on the brink: 66,000 jobs at risk!

The automotive industry in Baden-Württemberg is under pressure. In a comprehensive structural change, the country's economics minister, Nicole Hoffmeister-Kraut, expressed concern about the current crisis. Despite the high regard for German automobile manufacturers, there is increasing dissatisfaction with their competitiveness. “We are no longer competitive,” she explained and called for rapid reforms to get the industry back on track tagesschau.de reported. The situation is serious: The study by a renowned institution predicts that up to 66,000 jobs could be lost in Baden-Württemberg by 2030, caused by the electrification, automation and digitalization of the industry.

The problems are not just theoretical; large companies are also feeling the effects strongly. At Mahle, a key supplier, 1,300 employees are currently on short-time work, while CEO Arnd Franz criticized the decline in sales in the US and China. Bosch has also announced that it will cut 9,500 jobs in order to meet the economic challenges. Mercedes-Benz reported a drastic 50 percent drop in profits, adding to concerns about the future of the industry.

Reforms and support needed

Hoffmeister-Kraut emphasized the urgency of reforms to make production competitive again. “The production costs in Baden-Württemberg have become too high,” said the minister. It may also be necessary to consider wage cuts, which Barbara Resch from IG Metall vehemently rejects. The federal government is now planning to grant tax breaks and subsidies to relieve the burden on the industry. A subsidy of 6.5 billion euros for network fees is expected from 2026.

The wind in the automotive industry is blowing harshly. How auto-motor-und-sport.de reports, the entire industry in Germany and Europe seems to be in crisis mode. ZF Friedrichshafen AG, for example, is considering spinning off its E division, which could affect over 32,000 employees. Bankruptcy and the loss of 1,500 jobs were also announced at Gerhardi Kunststofftechnik.

The mood within the company is tense. The Ifo Institute has noted a decline in the sentiment barometer in the automotive industry, which indicates a worrying outlook for the next few months. This affects not only large companies like Volkswagen, which are under pressure due to massive strikes by their employees against austerity plans, but also many smaller companies that are finding it difficult to stay afloat.

In the current situation, it remains to be seen what measures and discussions are necessary to sustainably stabilize the automotive industry in Germany. The challenges are enormous and time is running out to secure the future of the industry and its employees. In this dynamic environment, a good hand in finding solutions would be required.