Approximately 100,000 automotive jobs in Germany are thought to be at risk due to the coronavirus and its impact on the industry, Welt reports.
Demand for vehicles in Germany is falling as the country has been hit especially bad by the Covid-19 pandemic and, according to automotive market expert Ferdinand Dudenhöffer, production capacity in the country could be far too large, potentially resulting in an overcapacity of 1.3 million vehicles.
Car production in Germany is expected to shrink to 3.8 million vehicles this year compared to the 5.1 million vehicles manufactured locally in 2019. This fall in production will be triggered by a significant drop in demand and could see approximately 100,000 of the 830,000 jobs in the German automotive industry scrapped.
“We have to expect a reduction in production capacity in the automotive industry in Germany. A good 100,000 jobs could be at risk – twelve percent of today’s jobs at car manufacturers and suppliers”, Dudenhöffer said.
Dudenhöffer is calling on the German government to do more to stimulate demand for new cars, in particular for electric and hybrid vehicles. As it stands, the country offers an environmental bonus of up to €6,000 ($6,676) for buyers of green vehicles, but other measures could be taken as well.
“For example, the manufacturers could offer cheap car subscriptions, combined with return guarantees in the event of unemployment,” Dudenhöffer said. “Only courageous measures counteract the uncertainty among car buyers, which was great before the corona pandemic, for example with a view to the diesel exhaust crisis, the switch to electric vehicles”, the analyst added.
