The head of the German Association of the Automotive Industry (VDA), Hildegard Müller, anticipates a further, massive reduction in employment within the sector. Speaking to “Redaktionsnetzwerk Deutschland” Müller stated that up to 225,000 jobs are threatened by 2035-a figure approximately 35,000 higher than previously calculated.
She pointed out that the industry has already lost 100,000 jobs between 2019 and 2025 alone. Previously, the VDA had predicted a reduction of 190,000 positions over the same period (2019-2035). Müller highlighted that supplier companies are particularly vulnerable, as the transition from combustion engines to electric mobility is causing job losses precisely in that segment.
As the root cause for this downturn, Müller cited a “serious and persistent location crisis” impacting both Germany and Europe. She listed several compounding challenges, including high taxes and levies, expensive energy, steep labor costs, and excessive bureaucracy.
To retain a significantly higher number of jobs in the German automotive industry, Müller stressed the necessity of an adjustment within the European Union policy framework. She proposed that if, starting in 2035, there were provisions allowing a greater mix of plug-in hybrids, range extenders, and combustion engines-especially those utilizing renewable fuels-this shift would accompany a far smaller change in the employment structure while still advancing the goal of climate-neutral mobility. Under this scenario, the job reduction by 2035 would be projected at only around 75,000 positions, and approximately 50,000 jobs at the German location would be protected through flexibility and technological openness.