German Auto Workers Protest as Volkswagen Slashes Profit Outlook

Tens of thousands of automotive workers across Germany staged protests at more than 280 events on Monday to demand job and factory protections. The demonstrations follow a significant profit outlook cut by Volkswagen Group, which lowered its operating-margin forecast to no more than 1% citing restructuring costs, a €6 billion writedown tied to Porsche AG, and weakening demand in China.

The industry is facing a convergence of pressures, including high energy prices, the transition to electrification, and U.S. trade tariffs under President Donald Trump. Since 2019, Germany's car industry has lost approximately 100,000 jobs. Volkswagen is planning cuts that could affect 100,000 positions globally, while BMW is eliminating 8,000 jobs and Mercedes-Benz Group is shrinking domestic production in favor of expansion in Hungary.

Volkswagen CFO Arno Antlitz warned that the market changes are profound and lasting. In response, the IG Metall union is urging the government of Chancellor Friedrich Merz to lower energy costs and protect domestic production from low-cost imports, particularly from Chinese rivals. The Federal Government of Germany has established a €500 billion infrastructure fund to attempt to restore competitiveness.