Head of Gesamtmetall Perceives the Commencement of Industrial Decline

Head of Gesamtmetall Perceives the Commencement of Industrial Decline

Following the backlash against the federal government from the business world, the employers' association Gesamtmetall's chief executive parameters the start of de-industrialization in Germany and predicts up to 50,000 jobs lost in the industry.

Gesamtmetall's president, Stefan Wolf, stated that he's witnessing the early stages of de-industrialization in Germany, resulting in relocations across the nation. Companies in the automotive and supplier industries are especially hit hard, with many businesses curbing their investments due to Germany's unfavorable conditions, leading to a projected loss of over €300 billion.

Wolf also anticipates further layoffs in the near future, especially in production. "I've seen redundancies in major automotive suppliers already, and I'm worried this trend is picking up steam," he said. "If things don't turn around soon, we're looking at significant job losses."

Wolf estimates that within the next three to four years, the job losses could total between 40,000 and 50,000 jobs. He urged for structural changes instead of dismissing the situation as a temporary economic downturn. He didn't specifically target Federal Chancellor Olaf Scholz in his criticism.

Lastly, BDI President Siegfried Russwurm weighed in on the matter, accusing the government of causing "two lost years" due to its coalition with the traffic light party. According to Russwurm, Germany ranks last in all economic data, and industrial production has been in decline since 2018, which might also continue in 2020.

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1. The car industry, along with its supplier sectors, has been significantly affected by the unfavorable conditions in Germany, leading employers' association Gesamtmetall to predict up to 50,000 job losses.
2. The de-industrialization trend in Germany, as highlighted by Gesamtmetall's president, Stefan Wolf, has also impacted the employment scenario in the car manufacturing sector, increasing the likelihood of job cuts.
3. The German balance of trade may suffer a significant blow due to the ongoing unemployment in the car industry, as projected losses in this sector could reach €300 billion, according to company investments data.

Source: www.ntv.de