German Carmakers Face Rising Worker Backlash as Industry Loses 300,000 Jobs
23.06.2026 - 20:25:55 | boerse-global.de
The German automotive sector has shed 300,000 jobs since 2019 — roughly 10,000 per month — according to industry data that underscores the deepening crisis gripping one of the country's most important industries. The figures, released by employer association Gesamtmetall, came as works councils at Audi, Volkswagen and Porsche ratcheted up demands for binding commitments to protect domestic plants and workers.
Audi workers demand clarity from management
At a company assembly in Ingolstadt, Audi's works council chief Jörg Schlagbauer pushed the management for explicit guarantees on future employment and factory locations. "The workforce has delivered exceptional results," he told employees. "Now it is up to the leadership to create the framework for the coming years."
Vice chair Rita Beck singled out plant utilisation as the critical factor for site security. "Only stable production volumes can safeguard Ingolstadt in the long term," she said. Personnel director Xavier Ros countered that Audi's competitiveness required "consequential joint action." Morale among workers is described as low, and a new works agreement is reportedly in the works.
Pressure runs through the entire VW group
The situation at Audi mirrors wider tension across the Volkswagen empire. In Baunatal, roughly 6,000 employees gathered for a simultaneous assembly. Works council head Carsten Büchling accused the board of a "communication disaster," with staff worried about the cost-cutting trajectory and the lack of detail in the "2030 vision" — particularly since the current employment security pact runs out at the end of the decade.
Porsche has also stepped up its austerity drive. CEO Michael Leiters told the annual general meeting the company would slim down further, targeting 3,900 job cuts by 2029. He cited excessive growth in indirect areas and announced plans to reduce model variants while focusing on higher-margin vehicles.
Broader industrial gloom
The unions' demands come against a darkening economic backdrop. The Federation of German Industries recently slashed its growth forecast for 2026 to just 0.4 percent. Industrial output fell in the first quarter compared with both the previous quarter and the same period a year earlier.
A survey by the German Association of the Automotive Industry found that 41 percent of small and medium-sized enterprises now describe their situation as poor or very poor. More than two-thirds are postponing or cancelling planned investments in Germany. Companies cite bureaucracy, tax burdens and high electricity prices as their main headaches. The metal and electric industries alone have bled 300,000 positions since 2019, driven in part by the squeeze on suppliers.
Targeted investments offer modest bright spots
Despite the belt-tightening, Volkswagen is still channeling funds into selected future technologies. Its software subsidiary Cariad opened a new campus in Berlin, where roughly 1,000 employees will work on artificial intelligence and autonomous driving. Cariad CEO Peter Bosch stressed the importance of bundling expertise for modern infotainment systems.
In Hungary, Audi's Gy?r plant has launched series production of the new MEBeco drive system. Some 350 million euros have been poured into the project since 2022. The drive is intended for compact electric models such as the Cupra Raval and secures 260 jobs at the site.
