German Auto Industry Cuts Jobs Amid Mounting Economic Challenges

Germany’s auto industry, a backbone of its economy, has cut around 51,500 jobs (7% of its workforce) between June 2024–June 2025, nearly half of total industrial job losses of 114,000, according to EY. Since 2019, the sector has shed 112,000 jobs amid falling profits, overcapacity, weak foreign markets, and rising Chinese competition. Revenues fell 1.6% in Q2 2025, with Volkswagen lowering its outlook. Exports to the U.S. dropped 8.6% amid tariff fears under U.S. trade policy. Combined with Germany’s economic slowdown and sluggish EV progress, pressures on auto exports to both the U.S. and China are expected to continue.