A new study has sent shockwaves through Germany’s auto industry: the country’s rapid push towards electric vehicles (EVs) could cost up to 186,000 jobs by 2035, raising concerns about the future of one of its core economic sectors. The VDA (German Association of the Automotive Industry) warns that the transition from traditional combustion engines to electric motors, which require significantly fewer components, could devastate jobs tied to conventional powertrain production and parts manufacturing.
Combustion Engine Jobs on the Chopping Block
The report reveals that roles in combustion engine production—long a stronghold for Germany’s automotive workforce—are especially vulnerable, as electric motors have far fewer moving parts, cutting labor requirements. Small and medium-sized suppliers, which rely heavily on internal combustion engine components, face the brunt of this transformation, with limited options to pivot to EV components.
An Urgent Call for Reskilling and New Strategies
To mitigate these job losses, the study emphasizes the need for reskilling programs and strategic shifts towards high-demand EV components like battery cell manufacturing and charging infrastructure. With Germany’s automotive sector directly employing nearly 800,000 workers and supporting over 1.3 million more in linked industries, the shift could have widespread repercussions if proactive measures aren’t taken soon.
The Future of Germany’s Auto Sector at a Crossroads
The report echoes a growing call for German automakers to expand their domestic EV supply chains to retain jobs and preserve their global competitive edge. Without a significant push towards localized battery production and training initiatives, Germany could see a critical part of its economy destabilized by 2035 as EV technology advances and labor demands shift.
As the industry navigates this transformative era, policymakers, automakers, and suppliers are urged to collaborate on a strategic plan to protect jobs and prepare the workforce for an electric future. The stakes couldn’t be higher, with 186,000 livelihoods hanging in the balance as Germany races to lead the EV revolution without losing its industrial heart.
