The shift to electric vehicle (EV) production in Germany is projected to significantly impact employment within the automotive industry. A recent report by the German Association of the Automotive Industry (VDA) estimates that by 2035, around 186,000 jobs could be lost due to the transformation, with a quarter of these losses already realized. This shift to EVs has led to changes in operational needs, prompting major cost-cutting measures across the industry. Volkswagen, for instance, has announced closures of three plants in Germany. The broader European car industry is experiencing similar challenges as companies strive to adapt to rapidly evolving market demands for more sustainable, electric-focused production lines.
The report from Prognos Research Institute highlights the specific changes in job types and numbers across the automotive sector. Since 2019, approximately 75,000 traditional automotive jobs have been lost, with significant cuts in metalworking positions. However, the industry has seen a partial offset with 29,000 new hires, mainly in roles related to automotive engineering and technical support for EV production, resulting in a net job loss of 46,000. Looking ahead to the anticipated 2035 milestone when only battery-electric vehicles will be manufactured, an additional 140,000 positions are projected to be eliminated if the transition proceeds as planned. These numbers will likely be influenced by the availability of skilled workers and supportive or restrictive political policies.
Despite the expected job losses, there are new growth opportunities within the automotive industry in fields linked to EV production. Jobs in automotive engineering, computer science, and software development have seen increases, with IT roles alone growing by nearly 25% since 2019. Skills in computer science, information technology, mechatronics, and energy engineering are becoming increasingly relevant as the industry undergoes its transformation. VDA President Hildegard Müller emphasized the significant investments German automakers are making in R&D and plant conversion, highlighting a commitment to turning this challenge into a success story for the German automotive industry.
