this post was submitted on 05 May 2025
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The automotive industry is why Germany has such a bad time economicly speaking. At least in the last five years or so. Car sales in the Europe(EU, UK &EFTA) were 15,805,752 in 2019 and only 12,963,614 in 2024. Obviously car manufacturers prefer cheaper factories in eastern Europe over the more expensive German ones, hence you see them shrinking staff. For the suppliers it is even worse, as a lot of them are specialized in combustion engines. With BEVs doing what they do, that means mass layoffs. That is why German automotive industry only employees 761,000 workers today. In 2018 it was 834,000.
At the same time Germany is able to do much more then just automotive and those sectors are able to grow. Hence you see stagnation.