German auto industry warns of 225,000 job losses by 2035
The German Association of the Automotive Industry (VDA) warned on May 13 that up to 225,000 jobs could be lost by 2035, 35,000 more than earlier forecasts. VDA President Hildegard Müller said the shift from combustion engines to electric vehicles is hitting suppliers hardest and pointed to a "serious and persistent location crisis" in Germany and Europe. The VDA added that greater technology openness could preserve up to 50,000 jobs.
The German Association of the Automotive Industry (VDA) warned on May 13 that up to 225,000 jobs could be lost by 2035, around 35,000 more than earlier forecasts, as the shift from combustion engines to electric vehicles hits suppliers hardest.
VDA President Hildegard Müller told RND that the figure represents a worsening outlook for the sector. "The shift from combustion engines to electric vehicles is already hitting suppliers hardest," Müller said. She cited a "serious and persistent location crisis" in Germany and Europe, pointing to high taxes and levies, expensive energy, high labor costs, and excessive bureaucracy as contributing factors.
The VDA said that greater technology openness could preserve up to 50,000 jobs in Germany. Without changes to EU rules, the association warned, a further 50,000 jobs could be at risk due to planned limits on combustion engine vehicles.
The report, published on May 13, 2026, underscores deepening concerns about the competitiveness of Germany's automotive industry as the transition to electric mobility accelerates.