140,000 jobs in the German auto industry could be "blown away", what is the cause?

Based on the research results of Prognos, the German Automotive Industry Association (VDA) said that many industries will be affected by the trend of switching to electric vehicles, such as metalworking or mechanical engineering.

The German auto industry could lose 140,000 jobs by 2035. (Source: China Daily)

Specifically, the switch to electric vehicles could cost the German auto industry an additional 140,000 jobs by 2035.

VDA estimates that about 46,000 jobs in the automotive industry have been cut since 2019. By the end of 2023, there will be a total of nearly 911,000 people working in the automotive industry.

“Transforming the automotive industry is a huge task. Lower employment is not a symptom of a crisis, but part of the transformation process. But it is important that the political framework supports and accompanies this change,” stressed VDA President Hildegard Muller.

In fact, it is clear that there will always be occupations that become more relevant to new development trends and there will also be other occupations that become less and less important.

Germany's competitiveness as a business location is essential for the future of the automotive industry, according to Mr. Muller.

“Positive signals are important to show that the German automotive industry does not only have a perfect past but also that there will be new things in the future. The political framework will determine whether people will invest in Germany in the future or whether new things will happen and create jobs here,” said VDA President Muller.

He called for competitive energy prices, less bureaucracy, faster planning and approval processes, and more free trade agreements.

Meanwhile, VDA chief economist Manuel Kallweit said that switching to electric vehicles would require around 30% fewer employees because electric motors are simpler to produce than internal combustion engines.

According to research, since 2019, the number of unemployed people has begun to increase, especially in labor-intensive areas. Jobs in the mechanical and metalworking fields are no longer suitable for the current situation.

In contrast, employment increased in fields such as engineering research and development, computer science, electrical engineering, and software development.

Source: https://baoquocte.vn/140000-viec-lam-trong-nganh-cong-nghiep-o-to-duc-co-the-bi-thoi-bay-nguyen-nhan-la-gi-291852.html