Germany’s economy minister, Robert Habeck, met Monday with leaders of the German auto industry to discuss the state of the industry, which has been facing significant downsizing and a crisis in recent years. The aim of the meeting was to find solutions to the sector’s challenges and ensure the competitiveness of German car manufacturers in the electric car market. The meeting was attended by the Association of German Automobile Manufacturers (VDA), the IG Metall trade union, as well as the leaders of the largest manufacturers and suppliers, reports Euractive.
The German situation is critical, and during the transformation of the automotive industry, several large companies, including Volkswagen, Bosch and ZF, are planning significant staff reductions.
Volkswagen recently announced that it will abandon previous job security guarantees that protected 110,000 workers in Germany, and that up to 30,000 jobs may be at risk. Both Bosch and ZF may lose a total of around 21,000 employees.
Amid budget problems, the German government ended subsidies of up to 4,500 euros for the purchase of electric vehicles at the end of 2023, which caused a significant drop in the sale of e-cars. Earlier, in January 2023, support for plug-in hybrids was also frozen. Auto industry players and environmental organizations alike expect Habeck’s meeting to show a clear commitment to electromobility. For example, the SPD proposes to restore the 2009 electric car bonus, which would be increased from 2,500 euros to even 6,000 euros in the current economic situation.
Sales of electric cars are falling short of expectations as the EU imposes ever stricter emissions rules on automakers. The European Automobile Manufacturers Association (ACEA) says the current rules do not take into account the dramatic changes in the geopolitical and economic situation and is calling for a faster review by 2026.
EU targets include reducing average CO2 emissions from new cars by 15% by 2025, 55% by 2030 and 100% by 2035, all compared to 2021 levels.
According to the German car industry, the current form of the rules hinders the competitiveness of the sector, but the European Commission rejects the changes for the time being, saying that manufacturers have had enough time to prepare.
The crisis of the German automotive industry is not only a local problem, but also affects the European economy, especially Hungary, which is also closely linked to German automotive production. The two countries are both opposed to new EU punitive tariffs on electric cars, but the transformation of the automotive industry could have a severe impact on the economic models of both nations if the crisis deepens.
Together, the two countries are trying to prevent the European Union from imposing punitive tariffs on the import of Chinese vehicles.
The cover image is an illustration. Cover image source: Getty Images
Source: www.portfolio.hu
