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German auto industry body warns further 125,000 jobs at risk by 2035 - Finance news and analysis from Global Banking & Finance Review
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German auto industry body warns further 125,000 jobs at risk by 2035

Published by Global Banking & Finance Review

Posted on May 13, 2026

1 min read

· Last updated: May 13, 2026

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German Auto Industry Faces 125,000 More Job Losses by 2035, VDA Warns

VDA Issues Stark Warning Over Future of German Car Sector

Projected Job Losses and Industry Decline

BERLIN, May 13 (Reuters) - Germany's VDA auto industry association warned on Wednesday that a further 125,000 jobs could be lost in the country's car sector by 2035, taking the total decline since 2019 to about 225,000, unless the EU becomes more technology-open and improves Germany's competitiveness.

Impact of EU CO2 Fleet Rules

VDA said current EU CO2 fleet rules for cars and vans, allowing only battery-electric and fuel-cell vehicles to be newly registered from 2035, endanger 50,000 jobs in Germany. A broader mix of plug-in hybrids, range extenders and combustion engines with renewable fuels could save these positions, according to the VDA.

Industry Response and Recommendations

(Reporting by Kirsti Knolle, Editing by Linda Pasquini)

Key Takeaways

  • VDA projects up to 225,000 job losses in German car sector by 2035 (100,000 already lost 2019‑2025 and 125,000 more at risk) amid weak competitiveness and regulatory inflexibility (uk.marketscreener.com).
  • Current EU CO₂ fleet rules mandating only battery‑electric and fuel‑cell vehicles from 2035 threaten ~50,000 jobs; VDA argues inclusion of plug‑in hybrids, range extenders, and renewable‑fuel combustion engines could preserve these roles (welt.de).
  • VDA calls for technology openness, faster fleet rule review, recognition of renewable‑fuel vehicles as zero‑emission, and stronger infrastructure and trade frameworks to safeguard jobs and competitiveness (vda.de).

References

Frequently Asked Questions

How many auto industry jobs in Germany are at risk by 2035?
According to the VDA, an additional 125,000 jobs could be lost in Germany's auto sector by 2035.
What is causing the potential job losses in the German auto industry?
EU CO2 fleet rules requiring only battery-electric and fuel-cell vehicle registrations from 2035 are cited as a major reason.
How many total job losses are projected in Germany’s auto sector since 2019?
About 225,000 jobs could be lost in total by 2035, according to the VDA.
What alternatives does the VDA suggest to prevent job losses?
The VDA suggests a broader mix of plug-in hybrids, range extenders, and combustion engines with renewable fuels to save jobs.
Which organization is warning about these job losses?
The warning comes from the German VDA auto industry association.

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