New figures from the German car manufacturers' interest organization VDA show that up to 190,000 jobs may be lost in the country's car industry by 2035.
New figures from the German car manufacturers' interest organization VDA show that the country's car industry could lose up to 190,000 jobs in 2035.
The survey, made by the research institute Prognos, points to the transformation to electric cars as the primary reason.
Already between 2019 and 2023, 46,000 jobs in the car industry have been lost, as electric cars are cheaper to produce and require fewer employees. However, the loss of jobs only seems to continue. The analysis indicates that areas such as mechanical engineering, industrial engineering and metalworking will be hit hardest.
– The transformation of our industry is a huge task. The companies in the German car industry and their employees make the greatest effort to ensure that it succeeds. We want change, says VDA president Hildegard Müller in a press release .
Müller acknowledges that the change, which she herself points to, will lead to job losses. She doesn't want to call it a crisis either.
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– The lower employment is first and foremost not an expression of a crisis, but rather part of the transformation."
The survey also shows an increase in the need for employees in computer science, software development, research, technical development and electrical and energy engineering. Since 2019, employment in computer science and software development has increased by approx. 25 percent.
A further challenge is the demographic development. According to the survey, around a quarter of employees are expected to retire within the next ten years.
Something that can lead to a lack of qualified labor in areas such as electrical engineering and IT. At the same time, demand is expected to increase in mechatronics and IT network technology, while the supply of workers in areas such as plastic and rubber production will decrease.
In order to meet these challenges, the German car manufacturers and suppliers plan to invest 280 billion euros in research and development and 130 billion euros in remodeling the factories by 2028.
Müller emphasizes the importance of political framework conditions to ensure that there are also new jobs to be found in Germany's automotive industry.
– Competitive energy prices, less bureaucracy and faster approval procedures are decisive, it says.
The survey from Prognos is based on the Federal Agency's employment statistics and is based on the development within 700 sub-sectors associated with the automotive industry.
The news comes just one day after Reuters reported that Volkswagen plans to close several factories in Germany. If that happens, it will be the first time ever that the brand does it in its home country.
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