Two studies, one by EX management consulting and another one by Horvát, show a dramatic crisis in the automotive and machine building sectors in Germany.
German industrial companies’ revenue has shrunk by 2.1% in the second quarter—the eighth consecutive quarter of declining revenue. Employment has also declined significantly: 114,000 jobs lost within a year, with the strongest job losses in the automotive industry, which has lost 51,000 jobs in the past twelve months alone.
Hildegard Müller, president of the German Association of the Automotive Industry, said that 190,000 jobs will not survive the EU-ordered Green transition from combustion engines to battery-powered cars by 2035. This is because the new generation of cars requires less vertical integration and is cutting out the very heart of factories, namely engine construction.
Less demand from the automotive sector has led to a crisis in the machine-building sector, (Maschinenbau) where 75% of companies see their market position severely threatened. One-fifth of workers could lose their job.
