BMW to Volkswagen: How deep is Germany's auto industry cull?

In Germany's auto industry, a wave of job cuts is sweeping through the sector as the nation's carmakers grapple with fierce competition from China. BMW, the latest company to announce reductions, plans to eliminate up to 8,000 positions globally, accounting for approximately 5% of its workforce. Porsche has also announced plans to cut 5,000 German jobs by the end of 2035, with around one-fifth of its workforce affected.

Volkswagen, Europe's largest carmaker, recently doubled its job-cull program, aiming to eliminate up to 100,000 positions and closing four German factories. Mercedes-Benz has also adjusted its savings plan, set to deliver €5 billion by 2027, but ruled out compulsory redundancies in German plants. Both VW and Mercedes-Benz have postponed bonus payments for German workers and proposed extending the workweek to offset the cuts.

Volkswagen's workforce is significantly larger than Toyota's, employing around 60% more workers while producing a similar number of vehicles. The high labor costs and slow progress on electric vehicles have contributed to the industry-wide job cuts. The recent closures and job losses in companies like Porsche and Audi could further impact thousands of workers across Germany.