German Auto Industry Reports Job Losses From Chinese Competition

Germany's auto sector has warned that tens of thousands of jobs could be lost across Europe because of competition from Chinese carmakers and unmet political targets. Hildegard Müller, president of the German Association of the Automotive Industry, said the VDA and its members have repeatedly highlighted poor business conditions in Germany and Europe, yet the required policy shift has not occurred.

GB News reported that Chinese brands have gained ground in the European market this year.

Data from the European Automobile Manufacturers' Association showed BYD and SAIC each holding 2.1 percent of new car sales, Geely Group at 2.6 percent, Chery at 1.3 percent and Leapmotor at 0.8 percent. Those figures exceed Tesla's 1.9 percent and Jaguar Land Rover's 0.5 percent. Müller stated that reality has overtaken political goals and is increasingly putting jobs at risk.

She added that the crisis in the region's business environment is affecting European industry as a whole and that not all manufacturing plants of manufacturers and suppliers can be retained under current conditions. Müller proposed opening existing sites to foreign manufacturers as one way to protect employment.

GB News reported separate indications that Volkswagen may cut up to 100,000 positions and close some plants as part of cost reductions.

The company, which owns Audi, Skoda, Seat and Cupra, employs more than 650,000 people across its brands. A Volkswagen spokesperson said the firm would not pre-empt ongoing discussions and noted that the current business model no longer works across all brands. Müller said there is no realistic alternative to a change of course in Berlin and Brussels if companies are to remain competitive.