Economist Ferdinand Dudenhöffer is calling for the abolition of the 35-hour working week within the struggling German automotive industry. According to the founder of the CAR Institute, the high production costs could be alleviated, at least partially, by Volkswagen reintroducing the 40-hour week without corresponding wage adjustments. This approach is currently being discussed at Mercedes. Dudenhöffer suggests that employees would need to make concessions if the industry hopes to successfully navigate the future, proposing, “Let’s set aside collective bargaining autonomy for a few years.”
The auto expert predicts that the political and economic sectors are facing “genuinely tough times,” yet remains optimistic, believing a turnaround could occur in five to seven years. He maintains that German automakers are fundamentally “well-positioned.” He points to the Skoda brand within the VW group as evidence that advanced, competitive vehicles can be produced. “Skoda can do it-so the general assumption that automakers have messed up is incorrect.”
Dudenhöffer also refutes the notion that German manufacturers have neglected electric mobility. He states that VW was the first European producer to invest in a dedicated pure EV factory. He argues that the issue was not a systemic failure by the conglomerates, but rather the constant changes in policy and regulatory frameworks, which make navigating industrial investment challenging.
Despite this optimism regarding fundamental capability, the industry continues to face severe financial strains. Volkswagen recently reported a decline in sales, with the number of cars sold dropping nearly 9 percent in the second quarter of 2026. Against this backdrop, the supervisory board of the Wolfsburg-based corporation had discussed restructuring plans. These plans included the potential closure of four plants and the reduction of more than 100,000 jobs. The body failed to reach an agreement during the contentious meeting. Dudenhöffer criticized the lack of resolution, noting, “The uncertainty remains, which is not good for customers, employees, or capital providers.”
