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Switch to e-cars will cost Germany 75,000 jobs, study finds

The growing use of electrified vehicles is expected to cost Germany's crucial car sector some 75,000 jobs by 2030, a study found Tuesday, with smaller auto parts suppliers set to be worst hit.

Published: 5 June 2018 13:52 CEST
Switch to e-cars will cost Germany 75,000 jobs, study finds
The production of e-cars at a BMW plant in Leipzig. Photo: DPA.

The IG Metall union, which commissioned the study along with BMW, Volkswagen, Daimler and a string of car parts makers, said the pivot towards cleaner engines posed a “major challenge” to Germany's biggest industry, which employs more than 800,000 people.

Electric engines are simpler to build and require far fewer parts than petrol- or diesel-fuelled cars.

According to the study, carried out by the Fraunhofer Institute, the shift will eliminate 100,000 of the 210,000 jobs in drivetrain manufacturing by 2030, while around 25,000 new roles will be created linked to batteries and other specific requirements for electric cars.

The figures were calculated on the assumption that by then, 25 percent of all cars on Germany's roads will be fully electric, while another 15 percent will be hybrids, which combine an electric motor with a traditional internal combustion engine.

Today, these cars account for less than two percent of the market.

SEE ALSO: German automakers are biggest global spenders on electric cars: study

IG Metall chief Jörg Hofmann said the government and company bosses needed to take urgent action to prepare the industry for the upheaval, including through retraining schemes.

But he also warned that not everyone would survive the electric revolution.

“There will be suppliers who won't be able to adapt their business model, especially among small- and medium-sized companies,” Hofmann told reporters in Frankfurt.

Whereas it takes some 4,000 workers to assemble a million gasoline-powered engines per year, just 1,840 are needed to build the same number of electric motors, the study said.

Volkswagen's staff representative Bernd Osterloh told reporters that the car giant would respond to the changes by phasing out jobs through retirement schemes and “using the opportunities presented by the transformation”.

Despite being home to some of the world's biggest and best known carmakers, Germany's auto industry was slow to focus its attention on the greener, smarter vehicles of the future — allowing newcomers like Tesla to take the lead.

But German firms have stepped up their efforts in the wake of Volkswagen's 2015 “dieselgate” emissions cheating scandal, which badly damaged the reputation of diesel cars and spurred a push towards more environmentally friendly engines.

READ ALSO: German auto companies 'at forefront' on key electric car technology

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Published: 7 February 2024 10:54 CET
Updated: 10 February 2024 08:20 CET
Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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