In Germany, an industrial powerhouse, the automotive industry is not only the engine of the national economy, but also a symbol of the country's industrial strength and a source of national pride. From the classic Beetle to the luxurious Mercedes-Benz, BMW, to the world-famous Porsche, German car brands are well-known all over the world. However, with the global automotive industry electrification, the German automotive industry is facing unprecedented pressure to transform, not only in terms of technological innovation, but also in terms of profound changes in the job market. A new study by the German Association of the Automotive Industry (VDA) is a wake-up call, predicting that by 2035, the transition could lead to the loss of as many as 186,000 jobs, of which about a quarter have already disappeared in the process, revealing the difficulty and complexity of the road to transformation.
The Cost of Transformation: The Grim Reality of Job Loss
Since 2019, the German automotive industry has experienced significant job losses, totalling 46,000 jobs. Behind this number are the pains of the transition to electric vehicles. With the rise of electric vehicles, workers on traditional combustion vehicle production lines face the problem of skill mismatch, while emerging fields such as battery manufacturing and electronic control systems require new professional skills. The urgency of this transformation is not only technical, but also has a direct impact on the job market, putting many workers at risk of losing their jobs. The German Association of the Automotive Industry (VDA) pointed out in the report that high electricity prices, complex tax structures and increasing administrative barriers have all weakened the international competitiveness of the German automotive industry to a certain extent, further exacerbating the turmoil in the job market.
Figure: Warning of the transformation of the German automotive industry: 186,000 jobs will disappear by 2035
Policy and market: the twin challenges of transformation
In the face of the severe challenge of global climate change, the EU has set ambitious emission reduction targets to reduce net greenhouse gas emissions by 55% by 2030 compared to 1990 levels, and plans to achieve carbon neutrality by 2050. Against this backdrop, the decarbonization of the transport sector is a key component. Data shows that about a quarter of Europe's greenhouse gas emissions come from transportation, and the sector is the only sector in the EU where carbon emissions continue to rise, which undoubtedly puts huge pressure on the automotive industry to transform. Last year, the European Union adopted a landmark policy decision that from 2035, the EU will completely ban the sale of new cars that emit carbon dioxide, which means that gasoline vehicles will be completely retired from the stage of history in the future, paving the way for the full popularization of electric vehicles.
Technological Innovation: New Opportunities in Transformation
Despite the challenging road to transformation, the German automotive industry has also found new growth opportunities in the process. With the rapid development of technologies such as electric vehicles, autonomous driving, and connected cars, employment opportunities in the field of automotive engineering in Germany are showing a new trend. Employment in areas such as manufacturing, technology research and development, computer science, electrical engineering, and software development has increased significantly. IT jobs in particular, IT employment in the automotive industry has increased by about a quarter since 2019 and by a staggering 85% since 2013. This change shows that while traditional auto manufacturing jobs have been hit, new technology areas such as new energy vehicles and intelligent networking have injected new vitality into the job market, providing workers with opportunities to retrain and transform their careers.
The transformation of the German automotive industry
The transformation of the German automotive industry is an all-round revolution, which not only involves technological innovation, but also needs to rearrange and optimize the entire industrial chain. German car companies have shown a positive attitude in this transformation, and have increased investment in the field of new energy vehicles, not only launching a variety of electric vehicle products, but also making remarkable progress in battery technology and charging infrastructure construction. According to the data, the total number of electric passenger cars registered in Europe exceeded 1.36 million last year, a year-on-year increase of 142%, which indicates that the electric vehicle market is expanding rapidly and provides new development opportunities for the German automotive industry. Müller, chairman of the German Association of the Automotive Industry, said that by 2025, the German automotive industry will invest up to 150 billion euros in the field of electric vehicles and digitalization, which not only reflects the determination of the German automotive industry to transform, but also indicates the broad prospects for the development of the industry in the future.
Conclusions and prospects
The future of the German automotive industry is uncertain, but it is precisely this uncertainty that breeds change and hope. On the one hand, the challenges brought about by the transformation of the industry cannot be ignored, and the loss of a large number of traditional jobs will have a profound impact on the job market. On the other hand, the rapid development of new technologies has also brought unprecedented opportunities to the job market, providing workers with a path to transformation and upgrading. The German government and companies need to work together to develop smart policies that balance the short-term impacts of the transition with the long-term benefits, take full advantage of the opportunities offered by new technologies, and ensure the stability of the job market and the sustainability of the industry.
The future of the German automotive industry is not only about Germany's own economic development and social stability, but also a microcosm of the transformation of the global automotive industry. As EV and autonomous driving technologies continue to mature, the entire automotive industry needs to revisit its business model and employment strategy to adapt to new market needs and technology trends. Germany, as a leader in the automotive industry, will provide valuable experience and inspiration for the global automotive industry, leading the industry towards a greener, smarter and more sustainable future.
