51,000 Jobs Cut in German Automobile Industry as Tariffs Hit Hard | Carscoops

      Exports of vehicles and auto parts from Germany to the United States have decreased by nearly 9 percent this year.

      In the past year, Germany’s automotive sector has seen a loss of around 51,500 jobs. Currently, there are 112,000 fewer auto workers than there were prior to the COVID-19 pandemic. The significant tariffs imposed during the Trump administration have adversely affected Germany’s car industry.

      Germany’s once stable automotive sector is beginning to show signs of strain, with new data illustrating the immense pressure it faces. Over the last year, the workforce has diminished by 7 percent, while profits are declining and manufacturers are burdened by overcapacity. The competition remains fierce, particularly from international rivals that are gaining traction in the electric vehicle market.

      **An Industry in Crisis**

      Data from Germany’s federal statistics office, Destatis, indicates that approximately 51,500 jobs were lost in the automotive sector between June 2024 and June 2025. This job loss has affected not just the car industry but has also impacted the broader industrial landscape, with a total of 114,000 positions removed across the country during the same timeframe.

      When compared to pre-pandemic employment levels in 2019, the automotive workforce has decreased by 112,000, highlighting the severity of the industry's decline.

      According to CNBC, “no other industrial sector has seen such a significant drop in employment” as the automotive industry.

      A report from EY attributes the downturn to several factors. One key issue is that many major automakers in Germany have struggled to keep pace in the electric vehicle market, largely due to stringent regulations and government red tape. Additionally, German manufacturers have found it challenging to innovate at the pace of their Chinese counterparts and have been unable to reduce costs as effectively.

      **The Impact of Tariffs**

      Moreover, Donald Trump’s trade policies have created further challenges. The imposition of tariffs has begun to adversely affect local car companies, particularly as the United States stands as a crucial market for many of these brands. In the first half of 2025, car and auto part exports from Germany to the US fell by 8.6 percent.

      The issues within the automotive sector reflect a broader economic slowdown. Germany’s GDP contracted in both 2023 and 2024, and the projections for 2025 do not present a positive outlook. The economy achieved only 0.3 percent growth in the first quarter, followed by a 0.3 percent decline in the second, indicating a fragile recovery at best.