Car sector weakness saps industrial jobs in Germany

  • Several major carmakers including Volkswagen and Daimler have announced thousands of job cuts for the coming years.
FILE PHOTO: An employee moves car components in a production line at the Volkswagen plant in Wolfsburg, Germany (Reuters)
FILE PHOTO: An employee moves car components in a production line at the Volkswagen plant in Wolfsburg, Germany

The number of people working in German manufacturing firms fell for the first time in nine years in December, official data showed Monday, with car industry jobs among the worst hit.

Overall, December brought a 0.2-percent month-on-month fall in industrial employment to just under 5.7 million, federal statistics authority Destatis said in preliminary figures.

That was the first ebb since December 2010.

Also check these Cars

Find more Cars
Volkswagen Polo 2024 (HT Auto photo)
UPCOMING
Engine Icon999 cc FuelType IconPetrol
₹ 8 Lakhs
Alert Me When Launched
Volkswagen Tiguan 2025 (HT Auto photo)
UPCOMING
Engine Icon1984 cc FuelType IconPetrol
₹ 37 Lakhs
Alert Me When Launched
Volkswagen Taigun (HT Auto photo)
Engine Icon1498.0 cc FuelType IconPetrol
₹ 10.49 Lakhs
Compare
View Offers
Volkswagen Virtus (HT Auto photo)
Engine Icon999.0 cc FuelType IconPetrol
₹ 11.21 Lakh
Compare
View Offers
Volkswagen Tiguan (HT Auto photo)
Engine Icon1984.0 cc FuelType IconPetrol
₹ 32.79 Lakhs
Compare
View Offers
Volkswagen Id.7 (HT Auto photo)
UPCOMING
BatteryCapacity Icon77 kWh Range Icon621 Km
₹ 70 Lakhs
Alert Me When Launched

At 1.1 percent, the contraction was much sharper in the car industry, Germany's second-largest employer after machine tool making.

Several major carmakers including Volkswagen and Daimler have announced thousands of job cuts for the coming years.

The industry has for years battled to escape the after-effects of the "dieselgate" emissions cheating scandal that broke over VW in 2015 and has since spread to other manufacturers.

Meanwhile a forecast for the number of cars set to roll off German production lines this year showed the figure at a 22-year low of 4.67 million.

"The fall in car production means Germany continues to lose significance in the global auto industry," said study author Ferdinand Dudenhoeffer of the Center Automotive Research.

Around the world, car markets have been battered by the effects of the American trade conflict with China.

"In a simple image, Donald Trump is putting workers in the German car industry on shorter hours," Dudenhoeffer said.

But structural reasons are also behind falling output in Germany.

Where in 1998 close to 12 percent of all cars sold worldwide were produced in Europe's powerhouse, the share has shrunk to below six percent this year, Dudenhoeffer said.

Germany's share of production has contracted as the country's powerful car manufacturers have grown their operations abroad, he added.

That makes Germany more dependent than ever on good trading relations, especially with China, Dudenhoeffer said.

The expert also forecast that German car production would begin growing again in 2021 after bottoming out next year.

First Published Date: 16 Dec 2019, 20:00 PM IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city
Select a dealer

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.