The five largest German automotive suppliers have, in an extraordinary alliance, asked the Chancellor for support: The CEOs of Bosch, ZF, and Co. have, for the first time, written a joint letter with the IG Metall leadership to Olaf Scholz. “We are united by the deep concern for the automotive location in Germany” the letter, quoted by the “Handelsblatt” (Friday edition), reads.
Since 2019, almost 50,000 jobs have been cut in the supplier industry. The authors of the letter expect further bad news. “The announcements in the companies of the branch indicate a dramatic employment situation for the next months” they write.
The CEOs of Bosch, ZF, Continental, Schaeffler, and Mahle, on the initiative of IG Metall’s Christiane Benner, had already met with the company’s works councils at the end of last year to, despite existing differences, formulate a joint letter to Chancellor Olaf Scholz.
The industry is not only affected by the economic downturn and the slow demand from the automobile companies. The suppliers are primarily struggling with the transformation to a climate-neutral and software-based mobility. The supplier executives and the trade union see the electric mobility as a central technological path, but at the same time, they demand more technology openness in the letter.
According to the letter, the supplier industry has invested a lot in electric mobility. Due to the slow takeoff of e-mobility, especially in Germany, the investments made so far are “often not yet profitable.” The catalog of demands includes, among other things, the expansion of the charging infrastructure, the hydrogen network, and more support for EU decisions.