Germany’s once‑dominant automotive industry is facing mounting pressure as companies redirect investment and employment beyond national borders, the country’s leading industry association has warned.
Hildegard Müller, head of the German Association of the Automotive Industry (VDA), said on Tuesday that Germany was “in the midst of a severe crisis” as a business destination. Her remarks accompanied a new VDA survey that highlights deepening unease among suppliers and smaller manufacturers.
The poll—carried out among 124 small and medium‑sized firms within the vehicle supply chain—reveals that 72% plan to reduce investment within Germany. This includes 28% intending to move spending abroad, 25% delaying investment plans, and 19% cancelling projects entirely. Müller emphasised that these choices are already filtering through to employment numbers.
Nearly two thirds of the companies surveyed said they had cut jobs in Germany over the past year, with 87% attributing this to competitive disadvantages. At present, almost half of respondents are trimming their German workforce, compared with only 7% making reductions at international sites.
German automotive suppliers have been battling dwindling orders, heightened global competition, and the demanding transition towards electric mobility and software‑centred engineering. Leading manufacturers such as Volkswagen and Mercedes‑Benz—alongside major suppliers including Bosch, ZF, and Aumovio—have announced significant job cuts as they restructure for the future.
Government data indicates that employment in the automotive sector has slumped to its lowest level since 2011.
Müller warned that the economic fallout would have social and political ramifications, noting that the far‑right Alternative für Deutschland (AfD) is increasingly appealing to workers who feel insecure about their jobs. The erosion of industrial activity, she said, threatens Germany’s broader prosperity and its political stability.
She voiced strong criticism of current EU proposals intended to support the shift to electric vehicles and greener manufacturing, arguing that the measures fall short of what Europe’s biggest car‑producing nation requires. Müller called for market‑based incentives rather than additional regulation from Brussels.
The VDA’s position reflects long‑standing demands from German carmakers, who have urged the EU to introduce greater flexibility in emissions and electrification targets as the industry adapts to rapid technological change.
Audi South Africa has introduced the new Q5 range, comprising the third-generation Q5 SUV, second-generation Q5 Sportback, and the performance-focused SQ5 SUV and SQ5 Sportback. The range is built on Audi's Premium Platform Combustion and brings a new generation of petrol and diesel engines to the nameplate.
Geely Auto South Africa (GASA) has introduced Riddara, Geely Auto Group's new energy bakkie brand, to the South African market.
Ford’s next big electric vehicle push is less about a dramatic new badge and more about what happens behind factory doors.
Advertisement
Advertisement
You can't buy happiness but you can buy cars and that's kind of the same thing.
Unknown
The Toyota Starlet has improved from zero to a four-star rating for adult occupant protection in Global NCAP's latest #SaferCarsForAfrica crash test results. This follows a safety upgrade to make six airbags a standard fit.
South Africa's new vehicle market sustained strong momentum in August 2026, with aggregate sales increasing by 11,4% year-on-year to 57 898 units, says the Automotive Business Councill | naamsa.
South Africa’s new-vehicle market maintained its momentum in August, with aggregate sales of 57 898 units representing an increase of 11.4% compared with the same month last year.
