Germany's auto crisis: Can the 35-hour workweek survive?
German carmakers want employees to work 40 hours instead of the current 35 without extra pay, arguing it would improve competitiveness. Unions strongly oppose the proposal and view it as an attack on workers' rights.
Germany's auto industry is facing a severe crisis due to high manufacturing costs, US tariffs, competition from China, and the shift to electric vehicles. Major manufacturers like Volkswagen, Mercedes-Benz, and BMW are cutting jobs and production. The 35-hour workweek, a standard for decades, is now under scrutiny as labor costs in Germany are significantly higher than in competitors like Japan and China.
At $3,307 per vehicle, these costs are nearly five times greater. Auto suppliers such as Bosch and ZF Friedrichshafen have also announced job reductions. Industry experts argue that lowering labor costs is crucial for regaining competitiveness, yet unions oppose longer working hours. If carmakers moved from a 35-hour week to a 40-hour week, personnel costs could decrease by 13%.
However, to truly restore competitiveness, German manufacturers need to focus on innovation, software and AI investments, and improving efficiency in development and manufacturing. The transition will be challenging, with tough reforms needed across labor, energy, taxes, and infrastructure.
Written by urgent.news from DW News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
