Auto Industry Warns of Social Impact from Job Losses
Economy / Finance

Auto Industry Warns of Social Impact from Job Losses

Müller highlighted what she views as a lack of surprise regarding the reported loss of 50,000 jobs in the German automotive industry over the past year, stating the industry has consistently warned of declining value creation and employment figures associated with the transition to electric vehicle technology

She further cited unfavorable conditions within Germany as contributing factors, driving major German automakers to increasingly direct substantial investment towards international locations Müller cautioned that once manufacturing facilities are established abroad, the associated jobs are unlikely to return

The VDA president is calling for fundamental reforms to improve Germany’s business environment and for the European Commission to ease restrictions surrounding the planned phase-out of combustion engine vehicles by 2035 She specifically proposed that the stringent CO2 fleet emission regulations be applied at only 90% capacity Müller argued that focusing on achievable climate goals – such as developing charging infrastructure, strengthening power grids and securing raw material supplies – would be more productive than rigidly pursuing the combustion engine ban, which she believes provokes negative reactions from consumers

Müller emphasized the importance of creating the best possible conditions for successful transformation, rather than simply setting the most ambitious targets She pointed to the automotive industry’s existing contributions to climate action, noting that Germany is the world’s second-largest producer of electric vehicles, with production of battery-electric and plug-in hybrid vehicles projected to reach 17 million units in 2025

The aforementioned fleet emission targets and impending “combustion engine ban” are integral to the European Union’s “Fit for 55” package, designed to shift the EU’s trajectory from exceeding 4°C of warming to limiting it to just over 2°C It is worth noting that the International Court of Justice recently affirmed, in a 140-page opinion, the legally binding international obligation to adhere to the 15°C warming limit and the potential for legal action against states that fail to meet this target