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German car industry transformation could cost 186,000 jobs by 2035, study finds

Published 10/29/2024, 06:21 AM
Updated 10/29/2024, 06:27 AM
© Reuters. FILE PHOTO: FILE PHOTO: Cars are parked near the power station of the Volkswagen plant in Wolfsburg, Germany, September 4, 2024.    REUTERS/Stephane Nitschke/File Photo/File Photo
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BERLIN (Reuters) - The transformation of the German car industry could lead to 186,000 jobs losses by 2035, of which roughly a quarter have already occurred, a study commissioned by the VDA auto industry association released on Tuesday showed.

The 46,000 jobs already lost between 2019 and 2023 were due mainly to the transition to electric vehicles, according to the study conducted by research institute Prognos.

In its report, the VDA points to the loss of competitiveness in Germany due to the high price of electricity, tax rates and increasing red tape.

© Reuters. FILE PHOTO: FILE PHOTO: Cars are parked near the power station of the Volkswagen plant in Wolfsburg, Germany, September 4, 2024.    REUTERS/Stephane Nitschke/File Photo/File Photo

Volkswagen (ETR:VOWG_p) is threatening to shut at least three factories in Germany, lay off tens of thousands of staff and shrink its remaining plants, according to the company's works council.

"The fact is that we need a competitive location with the right political framework conditions so that as much added value and employment as possible remains in Germany and new jobs are also created," VDA said in the report.

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