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A general look at the production lines at the Mercedes-Benz plant on June 4, 2025 in Rostat, Germany.
Florian Wigand | Getty Images | Gets the image
The ideal storm of industry and economic problems was weighed in the German Autos sector, which shed tens of thousands of jobs during the year before the end of June.
During this period in the German Aquarium industry analysis With EY based on German statistics Destatis.
General losses in the German industry amounted to about 114,000 for 12 months before June 30 this year, the study noted. The figures believe that almost half of the reduction suffered a car sector.
“No other industrial sector has recorded such a strong decline in employment,” the CNBC said. The study noted that 112,000 jobs were made in the car compared to the 2019 period, which preceded the COVID-19 pandemic.
Jan Barrhilker, Head of the Assurance Department in EY in Germany, said in a press release that the reduction of jobs came in response to the difficult situation of the German automotive industry.
“Massive profits are reduced, excess and foreign markets make a marked job decline cannot be avoided,” he said, according to CNBC translation.
The EY report also noted that the income in the sector in the second quarter of 2025 attracted 1.6% compared to the same period of the previous year. German Auto giant Volkswagen, for one, report A sharp drop in profit in the second quarter and reduced its full years.
The decline in the automotive sector is noticeably less drop than 2.1% of the income that the total German industry faces.
Fastening struggle
German auto outright has long fought with many problems such as Chinese’s sharp competition Race of electrical vehiclesWhat some cars and analysts are attributed to the federal government bureaucracy and regulation.
US President Donald Trump’s President’s trade policy has added problems. Germany, and especially its author’s sector, is largely focused on exports and considers the US one of the largest markets where the label “is made in Germany” historically regarded as a sign of quality.
Recent Destatis shows that the carozo in the United States in the first half of 2025 decreased by 8.6% compared to the same period last year. Car manufacturers have also repeatedly warned about the potential effects of tariffs and surrounding uncertainty.
Industry can get some relief after detailed information The US-EU trade agreement appeared at the beginning of these months. Automobile duties will obey 15%, but only after the EU makes changes to the legislation to reduce its industrial levies.
The total state economy was also a wedding wind for the Autos sector, with an annual gross product in the country as 2023 and 2024. This year It seems that there is also a slow start: after the largest economy in Europe has recorded an increase of 0.3% in the first quarter, the latest figures for the second quarter indicate a decrease in 0.3%.
Going forward, Brorhilker Ey says he expects German car exports to the US and China will remain under pressure, and the first affects the tariffs and the second – the demand, which is also an internal problem.
As various German industrial giants are currently undergoing restructuring or reducing costs, “the number of industry jobs will fall,” said the archillker.
