55,000 Job Losses in Two Years
Robert Bosch, the German giant, has confirmed an additional 13,000 job losses by 2030, representing 3% of its global workforce. This decision illustrates the severity of the crisis shaking the German automotive industry, the country's economic pillar. According to the VDA (German Association of the Automotive Industry), a total of 55,000 jobs have already been lost in the sector over the past two years.
High Costs and Fierce Competition
Manufacturers and equipment suppliers face a challenging situation: falling demand, rising labor and energy costs, and increased pressure from Chinese competitors, notably BYD. Massive investments in batteries have not yet paid off as the transition to electric vehicles is slower than expected. Meanwhile, manufacturers must contend with soaring production costs and tariffs imposed by Washington that make German exports to the United States more expensive.
Volkswagen, Porsche, and Ford Are Downsizing
These job cuts are affecting the biggest players in the industry:
- - Volkswagen plans to cut 35,000 jobs in Germany by 2030.
- - Porsche issued its fourth profit warning for 2025 and is scaling back its electric vehicle plans.
- - Audi is also reducing its workforce due to lackluster sales of its high-end EVs.
- - Ford Europe has confirmed an additional 1,000 layoffs at its Cologne plant, which is dedicated to electric vehicles.
These cuts come on top of the restructuring already undertaken by major suppliers, including Continental, Schaeffler, and ZF Friedrichshafen.
The Electric Transition is a Factor in Job Losses
The technological transition partly explains these job losses. As Monika Schnitzer, chair of the German Council of Economic Experts, points out, “EVs require less labor.” Unions and economists are calling for workers to be retrained and requalified for growth sectors, such as defense and industrial technologies.
Nicole Hoffmeister-Kraut, Baden-Württemberg's Minister of Economic Affairs, described Bosch's announcements as “a stab in the heart of German industry.” She is urging Berlin and Brussels to adopt more business-friendly policies and review the 2035 deadline for phasing out combustion engines.
Repercussions on the North American Market
The situation is different in North America, but the impacts are being felt:
- - German manufacturers, such as BMW, Mercedes-Benz, and VW, are facing strong price pressure and increased competition from affordable Chinese EVs in the United States.
- - In Canada, although the automotive industry is not centered on German manufacturers, the repercussions are being felt throughout the global supply chain. North American suppliers that provide parts to Bosch, ZF, or Continental could be affected by declining volumes in Europe.
For Canadian consumers, this crisis could result in reduced availability of German models and increased prices.
Restructuring is Inevitable
As Marcel Fratzscher, president of the DIW institute, sums it up: “This is only the beginning of a major industrial restructuring.” With more than 700,000 people employed directly in Germany's automotive industry, the shock is significant. Observers estimate that tens of thousands more jobs could disappear by 2030 if the transition to electric vehicles does not accelerate.