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Germany’s auto industry has lost almost 48,700 jobs in one year, pushing employment in the sector to its lowest level in more than a decade, new data from the Federal Statistical Office shows. The fall reflects a wider industrial slowdown, high global pressure, and deep struggles among suppliers who sit at the heart of Europe’s biggest car economy.
Five things to know
1. How Germany lost 48,700 auto jobs in one year
German auto jobs fell by 6.3% in the past year. The sector now employs 721,400 people, the lowest level since 2011. A senior economist, Cyrus de la Rubia, said the drop shows “the long recession in industry is now clear in the job numbers.”
2. The auto sector took the hardest hit
Germany’s whole industrial workforce fell by 2.2%, but the auto sector suffered the largest hit among industries with over 200,000 workers. Parts makers were hit even harder, losing up to 11% of their staff in some areas.
3. Suppliers are in the most trouble
Tier 1 and Tier 2 suppliers, who build parts, bodywork, and accessories, recorded the biggest losses. Jobs in auto parts and accessories dropped by 11%. Bodywork and trailer makers cut 4%. Car manufacturers cut fewer jobs but still lost 3.8% of their workforce.
4. Global pressure is squeezing German firms
German brands face rising stress from high U.S. tariffs, fast-growing Chinese EV makers, and chip supply problems linked to disputes involving Nexperia. Demand in China is also falling, and that hurts German firms heavily exposed to the market.
5. A rare bright spot
Despite deep cuts, the mood improved slightly in October. Ifo’s business climate index for the auto industry rose from -21.3 to -12.9 points. Germany is still Europe’s largest auto producer, holding 35% of all EU output in early 2025.
