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German carmakers beat global sales slump amid job cut woes

German car giants Volkswagen, BMW and Daimler have posted strong sales growth in the face of a contracting global market in 2019, shifting massive numbers of SUVs ahead of a pivotal year for electric mobility.

German carmakers beat global sales slump amid job cut woes
A Mercedes Benz employee at a factory in Bremen. Photo: DPA

While ratings agency Fitch estimated global unit sales shrank four percent year-on-year, figures released in recent days showed BMW gaining two percent, Daimler's Mercedes-Benz 1.3 percent, and the 12-brand VW group flagship brand 1.3.

But even with growing sales, carmakers plan over 40,000 jobs cuts in the coming years, with Opel the latest to announce 2,100 voluntary departures Tuesday.

“German manufacturers are well positioned with their premium brands,” said Ferdinand Dudenhöffer, industry expert at the University of Duisburg-Essen.

In the fierce race to be worldwide number one in high-end cars, Daimler's nose remained ahead for the fourth year in a row.

The Stuttgarters shipped 2.34 million Mercedes-Benz, while Munich sold 2.17 million BMWs – both all-time records.

Both premium manufacturers' figures were massively boosted by China, with Mercedes sales there growing 6.2 percent and BMW 13.1 percent year-on-year.

But VW also highlighted strong performance in China “thanks to the strength of its brand,” Dudenhöffer said.

More keenly touched by the US-China trade conflict were American manufacturers like Ford and General Motors, he added.

READ ALSO: Rise of e-mobility in Germany puts more than 400,000 jobs at risk

Gas guzzlers

For all the German carmakers, 2019  brought new strides for the dominance of SUVs in sales figures.

Sales of BMW's “X” range grew 21 percent, now making up around half of total deliveries.

At Daimler, one in three Mercedes sold was an SUV at almost 784,000 units, while VW's Seat and Porsche subsidiaries also shipped more of the models.

“It's perfectly clear that SUVs drive sales and profits for the carmakers,” said Stefan Bratzel of the Center of Automotive Management.

But demand for the high-margin gas guzzlers will squeeze manufacturers as they scramble to reduce carbon dioxide (CO2) emissions in response to new EU rules.

From this year, automakers must reach average CO2 emissions across their new vehicle fleets of below 95 grammes per kilometre, on pain of harsh fines from 2021.

READ ALSO: How Germany is preparing for the rise of the electric car

“Electric cars have to hit the roads, otherwise the fines will land and they will be painful,” Dudenhoeffer said.

Electric avenue

Looking to reduce their climate impact, manufacturers have dozens of electric and hybrid models lined up for release in the coming years.

In particular focus is Volkswagen's “ID.3” compact car, presented to great fanfare at last September's IAA trade show as the electric counterpart to the company's stalwart Golf.

Meanwhile BMW and Daimler are placing most of their chips on hybrids rather than all-electric power.

“The manufacturers can't leave SUVs by the wayside,” Bratzel said. “Rather, they'll try to give them a coat of green paint” to overcome their negative image.

With many drivers still reluctant to take the electric plunge, “demand will depend in the long term on charging infrastructure” to reassure the doubters.

Charging points also represent one factor for carmakers' success not completely under their control, Bratzel pointed out.

But they are fundamental to plans – like VW's aim of selling 26 million electric vehicles and six million hybrids by 2029.

Even if the targets are met, far fewer workers are needed to assemble an electric than an internal combustion vehicle, and cash is needed for research and development spending.

That points to “a second major challenge” on the jobs front for the pillar of German industry, Dudenhöffer warned.

READ ALSO: Germany sees a significant rise in SUVs on roads

By Yann Schreiber

 

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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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