German Auto Industry Takes Another Hard Hit

Credit: electrive.com

Amid a row of hits to the German auto industry, Daimler has announced it will cut 10,000 jobs during the next two years.

As Europe’s largest economy suffers a slowdown in one of its most powerful sectors, the German government announced a new industrial strategy on Friday.

Daimler, the owner of Mercedes-Benz, has just added even more bad news to the list of problems in the German auto sector. Several factors, including fewer sales, have been reducing profits and forcing a serious overhaul of the industry. A recent shift in investments towards electric vehicles has also been adding pressure to the struggling industry.

Last week, Audi announced 10,000 job cuts, while Continental announced that about 20,000 jobs are “at risk.” Among the cuts at Daimler, one tenth of management will be cut. The company is trying to reduce its personal costs by as much as 1.4 billion Euros, and to do so they are cutting management and administration particularly deep.

On Friday, the German government announced that it will be taking measures to protect its auto sector. Among these measures, they will be taking steps to protect important technologies from foreign takeovers. However, Germany’s leading car lobby, the VDA, protested the move, arguing that it could “restrict entrepreneurial activity.” The VDA has preciously warned that 70,000 jobs are at risk across the country for the next few years.

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