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The German automotive parts industry may see a 25% reduction in job opportunities in the future

Publish Date: 2024.02.23

  According to reports, industry experts predict that in the process of transitioning to electrification, jobs in the German automotive parts supply industry will decrease by a quarter.

  

  Frank Schwope, a lecturer in automotive economics at the University of Applied Sciences in Hanover, said that currently, automotive parts suppliers employ approximately 270000 employees in Germany, but this number may decrease to 200000 by 2030.

  

  In recent weeks, there have been increasing reports of layoffs in the automotive parts supply industry, with Bosch, Continental, and ZF all announcing or considering large-scale layoffs.

  

  Schwope told the media that he expects the number of jobs in the automotive parts supply industry to further decline. He said, "The number of employees in Germany's automotive parts supply industry may further decrease due to the impact of electrification transformation."

  In the coming years, the lives of automotive parts suppliers will still be more difficult than those of car manufacturers, especially as car companies accelerate their internal procurement. Schwope said, "Even if the industry creates new job opportunities in areas such as battery development or production, it cannot compensate for the losses of other job positions."

  

  Manuel Kallweit, Chief Economist of the German Association of Automobile Manufacturers (VDA), believes that considering the transformation the automotive industry is undergoing, it is not surprising for companies in the industry to announce layoffs. He stated that car suppliers will handle layoffs in a socially responsible manner and provide other positions within the company for employees who have lost their jobs.

  

  Kallweit said, "The affected people will not be completely unemployed due to layoffs. There is still a shortage of skilled workers, and this gap will not disappear in the coming years."

  

  Kallweit stated that if an employee switches from an automotive parts supplier to a battery manufacturer, from a statistical perspective, they will be transferred from the automotive industry to the electrical industry.

  

  Kallweit stated that from 2019 to 2023, the overall employment rate in the German automotive industry decreased by 6%. He said, "The employment rate of suppliers' employees has decreased more. However, the decline in car production is much larger." In 2023, Germany's car production was 4.1 million units, a significant decrease from 4.7 million units in 2019, with a decrease of about 12%.

  

  2016 was the peak period of German automobile production, with an annual output of 5.7 million vehicles. However, since then, the employment in the automotive industry has only decreased by about 30000 people to approximately 780000. Kallweit said, "Against the backdrop of a significant decline in production and industrial transformation, employment in the automotive industry could have been more affected."

  

  Kallweit also believes that the industry should pay special attention to small and medium-sized enterprises. He said, "After these companies retrain an employee to become a software engineer, the employee is likely to switch to a larger and more solvent company, and medium-sized enterprises will have to bear the cost of employee training. Small businesses cannot afford these costs, and we must provide more support for these companies in employee qualification certification and retraining."

  

  This article is reprinted from Gaishi Automotive Information Network

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