German Auto Sector Bleeds 177,000 Jobs in a Year as Porsche, Audi and Suppliers Slash
Published on 07/27/2026 at 16:51 | Redaktion boerse-global.de
The German automotive industry is undergoing its most severe contraction in decades, with fresh data showing 177,000 manufacturing jobs disappeared over the past twelve months. The crisis, which BDI President Tanja Gönner described as a deindustrialization threat, is now hitting every link in the supply chain—from luxury carmakers to mid-sized parts suppliers.
Porsche Targets Up to 6,000 Roles in Restructuring Push
On Monday, Porsche unveiled its "future package," planning to eliminate between 5,000 and 6,000 positions by 2035. The Weissach research and development center faces the deepest cuts. This comes on top of an earlier announcement to shed 1,900 jobs by 2029.
The Stuttgart-based automaker is seeking to extend job guarantees until 2035 in exchange for longer working hours and stricter home-office rules. Porsche's supervisory board signaled support for the tough measures over the weekend.
Supplier Aumovio Demands 40-Hour Week Without Pay Rise
Philipp von Hirschheydt, CEO of parts supplier Aumovio, is pushing for a 40-hour workweek with no wage compensation. At the company's Ingolstadt and Villingen-Schwenningen sites, working hours have already climbed from 35 to 38.
The move is tied to investment and training commitments—an attempt to stave off deeper job losses as cost pressures mount. But the IG Metall union warned over the weekend that raising hours while factories run below capacity would only endanger remaining positions.
Deviations from collective bargaining agreements are becoming more common. In Baden-Württemberg alone, 300 such exceptions were recorded last year.
Audi Slashes Forecasts, Neckarsulm Future in Doubt
Audi lowered its 2025 revenue forecast to between €58 billion and €63 billion on Monday, with expected profit margins of just 5 to 7 percent. The luxury brand's operating margin stood at only 3.8 percent in the first half of the year.
Volkswagen Group management has now put the Neckarsulm plant's future up for discussion, saying it is searching for "intelligent solutions" to secure the site—language that is unlikely to reassure workers.
15,000 Manufacturing Jobs Lost Monthly
The broader picture is stark. Around 15,000 industrial jobs vanish each month across Germany, according to BDI President Gönner, who cited high energy costs, structural weaknesses, competition from Chinese exports, and US tariff policy as the main drivers.
Industry analysts warn of cascading effects: if major automakers cut up to 50,000 positions, more than 200,000 jobs in the supplier network could be at risk.
ZF and Magna Feel the Squeeze
Transmission specialist ZF reported a net loss of €2.147 billion for 2025. Internal disputes have erupted over converting allowances into performance bonuses, splitting the works council.
International supplier Magna announced on Sunday it will close its Dorfprozelten plant by mid-2027—18 months earlier than planned—affecting 216 employees.
Smaller suppliers are scrambling to diversify. In Thuringia, 86 percent of automotive companies are now exploring new business areas. The defense sector has emerged as an unexpected lifeline, underscoring just how deeply the industry's dependence on traditional vehicle production has fueled the current crisis.
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