140,000 jobs in the German auto industry could be "blown away", what is the cause?

Based on research by Prognos, the German Automotive Association (VDA) stated that many industries will be affected by the shift to electric vehicles, such as metalworking or mechanical engineering.

The German automotive industry could lose 140,000 jobs by 2035. (Source: China Daily)

Specifically, the shift to electric vehicles could cost the German automotive industry an additional 140,000 jobs by 2035.

According to the VDA, approximately 46,000 jobs in the automotive industry have been cut since 2019. By the end of 2023, a total of nearly 911,000 people were employed in the automotive industry.

VDA President Hildegard Muller emphasized: “Transforming the automotive industry is a monumental task. Lower employment rates are not a sign of crisis but part of the transformation process. But what is crucial is a political framework that supports and accompanies this change.”

In reality, it's clear that there will always be professions that become more relevant to new development trends, and there will also be professions that become increasingly less important.

According to Muller, Germany's competitiveness as a business location is essential for the future of the automotive industry.

“These positive signals are crucial to show that the German automotive industry not only has a perfect past but also has new opportunities for the future. Political frameworks will determine whether people will invest in Germany in the future, or whether new things will happen and create more jobs here,” said VDA President Muller.

He called for competitive energy prices, less bureaucracy among officials, faster approval and planning procedures, and more free trade agreements.

Meanwhile, VDA chief economist Manuel Kallweit said that the transition to electric vehicles would require approximately 30% fewer employees because manufacturing electric motors is simpler than manufacturing internal combustion engines.

According to research, since 2019, the number of people losing their jobs has started to increase, especially in labor-intensive sectors. Occupations in the fields of mechanics and metalworking are no longer suitable for the current situation.

Conversely, job numbers increased in fields such as engineering research and development, computer science , electrical engineering, and software development.

Source: https://baoquocte.vn/140000-viec-lam-trong-nganh-cong-nghiep-o-to-duc-co-the-bi-thoi-bay-nguyen-nhan-la-gi-291852.html