German automotive industry faces potential loss of 200,000 jobs

The German automotive industry is facing a significant structural crisis, with experts predicting the potential loss of at least 200,000 jobs by 2030. Felix Mogge, a partner at Roland Berger, notes that while German manufacturers continue to produce high-quality vehicles, sales, revenue, and profit figures are declining.

The traditional export-oriented business model, which previously sustained German employment and profits, is losing effectiveness. Manufacturers are increasingly producing vehicles in markets where they are sold, such as the USA, China, and Eastern Europe, rather than in Germany.

A major factor in this decline is the changing landscape in China. The market share of German manufacturers in China has dropped from 21 percent in 2018 to 14 percent last year. As the Chinese market loses growth momentum, German brands including BMW, Volkswagen, Audi, Mercedes, and Porsche are facing increased competitive pressure and declining absolute sales numbers.