More than half of the companies in the automobile industry are planning layoffs
In the German automobile industry, numerous jobs are on the brink according to a survey. More than half of the polled companies in the sector plan to reduce staff in Germany, as revealed in a survey conducted by Horváth under the leadership of industry executives. The reasons being the high cost pressure and new competition, particularly from China.
59% of the polled companies stated they plan to reduce the workforce in Germany over the next five years, with 14% planning for significant reductions. Conversely, only 15% planned to expand their workforce.
The situation was barely better in other parts of Europe, where 53% of the respondents planned to reduce staff. However, companies continued to invest heavily in Germany and Europe. New jobs were being created elsewhere.
"Cars are increasingly being produced in regions where they are ultimately sold," says Frank Göller, Partner and Automotive Expert at Horváth, speaking to the German Press Agency. "This is not new but has intensified." The poor experiences of the recent past with chip supply shortages, particularly in semiconductors, have not changed this trend. "This process is accelerating further. The result is that jobs are being created almost everywhere in the world - except in Germany and Europe."**
75% of the polled companies therefore plan to build capacities in India, 60% in China, and the same number in Eastern Europe. The signs of growth were also evident in other parts of Asia, as well as in North and South America.
"New factories are rarely built in Germany," Göller notes. "When new factories are built, they are usually outside Germany. And employment is built there as well."
- In response to the survey, a significant number of automobile companies in Germany, specifically 59%, have expressed plans to dismantle their workforce by half over the next five years.
- Contrary to this, the survey revealed that companies in regions like India, China, and Eastern Europe are planning to expand their automobile industries, with 75%, 60%, and the same percentage respectively, planning to establish new capacities.
- The survey also highlighted a shift in the automobile industry, with 53% of European companies planning to reduce staff, while new jobs are being created in other parts of the world, including Asia and America, due to the relocation of production facilities.
