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Car market slowdown ‘threatens jobs’ at Germany’s Bosch

A global car market expected to slow this year and the continuing aftershocks of a sector-wide diesel cheating scandal will hit jobs at Germany-based Bosch, the world's biggest component supplier.

Car market slowdown 'threatens jobs' at Germany's Bosch
Bosch's headquarters in Gerlingen, 9 kilometres west of Stuttgart. Photo: DPA

“Of course, we have to react to falling demand,” chief executive Volkmar Denner told Munich-based daily Süddeutsche Zeitung on Tuesday when asked about possible job cuts.

Expected by analysts to contract this year, the global car market is developing “much more weakly than we still thought a year ago,” Denner said.

SEE ALSO: Five things to know about Germany's Dieselgate scandal 

“This isn't just a short-term dip that will quickly be recovered,” he added.

Reduced demand for diesel-fuelled vehicles “is hitting us particularly hard,” said Denner.

About 50,000 of the 410,000 jobs at Bosch worldwide are dependent on the diesel industry, reported FAZ. In Germany, the figure is a full 15,000.

Last year, Bosch cut 600 jobs in this sector by not extending fixed-term contracts or by sending associates on part-time early retirement.

Customers in Germany and abroad have turned away from the fuel since Volkswagen's 2015 admission to cheating regulatory emissions tests on 11 million vehicles worldwide, while investigations have spread to other carmakers in Germany's flagship industry.

SEE ALSO: Germany slaps Bosch with huge fine over Dieselgate role

Meeting tough targets

Many potential buyers have been deterred by already-implemented or proposed
bans for some diesels from city centres, as municipalities try to reduce levels of harmful nitrogen oxides (NOx) in the air.

Meanwhile manufacturers themselves are ramping up alternatives, like hybrid and battery-electric vehicles, to meet tough new EU carbon dioxide (CO2) emissions targets set to bite from next year.

SEE ALSO: Late to the party, German carmakers join race against Tesla

Over the full year, the company expects revenue at the same level as 2018, when sales reached €77.9 billion, rather than the slight increase it had previously predicted.

And “we won't be able to maintain the high level of profitability we had last year,” Denner said.

The company said early this year it expected a profit margin of below six percent, rather than last year's seven percent.
    

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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.'

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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