Saturday, April 5, 2025

Crisis in the car industry – here 86,000 have lost their jobs

In many places in the European car industry, the crisis continues to rumble outward. The latest figures show that 86,000 people have lost their jobs.

The crisis in the car industry continues beyond that. And it hits Germany and the country's car brands hard in particular. Since 2020, 86,000 jobs have disappeared in the automotive industry alone.

The figure derives solely from the settlements for positions that subcontractors have had to cut. The car brands' own cuts must therefore be added on top.

According to the industry organization Clepa, the situation is only going to get worse if the politicians do not intervene. Clepa, which represents a large number of actors in the car industry, including Swedish Autoliv and several large sub-suppliers, warns that even greater deterioration is the next step.

In Germany, more than 50,000 jobs have been lost in recent years, making the country the hardest hit area in Europe.

In Sweden, the crisis atmosphere among the car brands has already had consequences, as over 3,000 jobs have disappeared. Subcontractors such as ZF and Continental have made significant workforce cuts in response to the recession hitting the auto industry.

READ ALSO: Volkswagen boss expelled after drug scandal

The organization Clepa points to several reasons for the crisis. A combination of falling demand and rising production costs has created difficult conditions for many companies.

The transition to electric cars is an additional challenge, as many companies struggle to achieve a sufficiently high profit margin in connection with this transition.

Benjamin Krüger, Clepa's general secretary, states that the situation is worse than during the most critical periods of the pandemic.

He points out that the car industry, which has traditionally been a central part of the European economy, is at a decisive turning point. According to Krüger, more vigorous political measures are needed if Europe is to maintain its position as a leading player in the automotive industry.

Clepa fears that if something is not done soon, Europe may lose its competitiveness on a global scale.

The organization therefore calls on governments and decision-makers to take the initiative to support the industry in this difficult time, so that the automotive industry can adapt to the new market conditions without having to reduce more jobs.

Several car brands share that attitude. Right now, for example, Volkswagen is facing its first ever factory closure in Germany. And at BMW, they believe that a ban on the internal combustion engine, which the EU wants to pass by 2035 at the latest, is the same as a dependence on China. Read more about it here .

Read more exciting news from and about the world of cars right here!

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