BERLIN, Aug 27 (NNN-DPA) – Germany’s auto industry have cut more than 51,000 jobs over the past year, as weak demand, U.S. tariffs and the costly shift to electric vehicles, weighed heavily on the sector, according to a report by consultancy EY.
Employment in the auto sector fell by nearly seven percent over the 12 months to June, making it the hardest-hit branch of German industry, according to the report, yesterday. Across the broader industrial sector, headcount dropped by about 114,000 to 5.42 million, down 2.1 percent year-on-year.
Actually, major automakers have reported significant profit declines. BMW, Mercedes-Benz and Volkswagen, Germany’s three largest automakers, all reported steep profit declines, in the first half of this year, citing U.S. tariffs as a major drag on earnings.
Hildegard Mueller, president of the German Association of the Automotive Industry (VDA), said, the tariffs still impose billions of euros in added costs each year, a heavy burden as carmakers navigate the transition towards electrification.– NNN-DPA
