The German automobile crisis leaves 42,300 fewer employees in the first half of 2026

It is no secret that the German automobile is going through one of its worst crises. The complicated situation of the sector has led the factories in the heart of the European motor industry to reduce their workforce by 5.8% in the first half of 2026, with up to 42,300 fewer employees. Data that sinks the second most important industry on German soil to the lowest figures since 2005, as can be seen from a report by the Federal Statistics Office (Destatis) and advanced by EP.

The jump to electrification, the tariffs imposed by Donald Trump or the fierce competition from Chinese brands have hit the German motor hard, with 'barely' 691,500 employees. However, it continues to remain in second position, after mechanical engineering, with 905,900, according to the same document. Their case, however, is not a rare occurrence either, since in the manufacturing sector there have been a total of 144,100 layoffs, with a general decrease that reaches 2.7%.

The vehicle and engine manufacturing sector has not been saved from the screening, with a drop of 6.1% (429,200 affected), nor has the parts and accessories supply segment, which saw it plummet even more, with 7.6% (219,500). The exception was suppliers of bodies, structures and trailers, whose rate grew up to 10%, with 42,800 more workers.

More layoffs in sight

The breeding ground formed by different circumstances has left the largest European automobile producer more than touched. So much so that in recent times the triple entente formed by BMW, Mercedes-Benz and Volkswagen has been forced to announce numerous layoffs that already amount to more than 60,000. The last to join this negative trend was BMW. The Munich firm confirmed two weeks ago its intention to reduce its workforce by up to 8,000 jobs by 2027. A strategy with which they intend to save up to 1,000 million euros annually from 2028.

The giant Volkswagen is not spared either, which, in fact, is the worst off. The group, owner of brands such as Lamborghini, Seat and Skoda, confirmed a few months ago 50,000 layoffs in its homeland until 2030. A decision motivated by the collapse of its sales in the first quarter, when they sank 46%. However, the company's CEO, Oliver Blume, commented in an interview on the company's own intranet that, if this does not work, this figure could rise to 100,000 cuts.