German Auto Workforce Hits Lowest Level Since 2005

The Federal Statistics Office reported that Germany's automotive workforce dropped 5.8% to 691,500 workers in the year ending June 2026, marking the lowest employment level for the sector since 2005. The industry lost 42,300 employees, a contraction rate more than double that of the broader industrial sector. This decline is driven by high domestic production costs and intensifying competition from Chinese rivals in both the global and Chinese markets.

Staffing decreases varied across the supply chain, with manufacturers seeing a 6.1% drop and parts suppliers falling by 7.6%. Conversely, the segment for car bodies and trailers grew by 10%. Major industry players including BMW AG and Mercedes-Benz Group AG have recently lowered their outlooks following poor performance in China.

Volkswagen AG is considering the closure of several plants and the elimination of up to 100,000 jobs within Germany. These developments align with a May warning from the German Association of the Automotive Industry, which stated that up to 225,000 jobs could be lost by 2035.