Germany's automotive industry is in turmoil as Minister Robert Habeck calls a summit to address the sector's challenges. Major players, including the VDA and IG Metall, are expected to participate.
Volkswagen (VW) is particularly affected, with reports suggesting potential job cuts of up to 30,000 in Germany. The company's management has indicated that cost reductions are necessary for future investments.
The automotive sector is experiencing a significant decline in electric vehicle (EV) sales, with overall sales dropping by 18%. EV sales alone plummeted by 44%, attributed to the expiration of incentives in Germany.
Additionally, ZF, a major supplier, plans to cut 14,000 jobs over the next four years, reflecting broader issues in the supply chain. The average utilization of German automotive plants has fallen to just over two-thirds.
Negotiations between VW and IG Metall are set to begin, with potential implications for the workforce as the industry grapples with these economic pressures.