Overview
- Destatis data published Friday show the auto sector shed 42,300 jobs in the year to June 2026, leaving 691,500 people employed and marking the smallest workforce since 2005.
- Job losses were largest among parts and accessories suppliers, which fell 7.6 percent, and vehicle and engine makers, which fell 6.1 percent, while the smaller car‑body segment grew by 10 percent.
- Several manufacturers and suppliers have announced cost‑cutting measures and layoffs, with BMW unveiling a global reduction programme of about 8,000 positions that will affect Germany heavily.
- Analysts and studies link the drop to electrification and automation that reduce labour in drivetrain and mechanical parts production while creating different jobs in batteries, power electronics and software that need new skills and locations.
- The decline concentrates risk in regions such as Baden‑Württemberg, which lost about 11,344 auto jobs, and raises pressure on policymakers to back re‑skilling, regional investment in battery plants and targeted support to limit further net job losses.