In October 2025, Germany’s auto industry came under intense scrutiny. According to Deutsche Welle and Euronews, major carmakers — Volkswagen, BMW, Mercedes-Benz, and Porsche — are facing declining demand in Europe and the U.S., coupled with rising costs of transitioning to electric vehicles.
Experts warn that if the trend continues, parts of production may be relocated outside Germany, potentially affecting tens of thousands of jobs. Plants in Eastern Germany, heavily focused on combustion engine components, are considered especially vulnerable.
The situation is worsened by:
– Stricter EU climate regulations effective from 2025;
– Reduced exports to the U.S. due to tariff barriers;
– Rising energy costs, making German production less competitive.
The German government is considering support measures, including tax incentives for EV makers and subsidies for charging infrastructure.
In October 2025, Germany’s auto industry came under intense scrutiny. According to Deutsche Welle and Euronews, major carmakers — Volkswagen, BMW, Mercedes-Benz, and Porsche — are facing declining demand in Europe and the U.S., coupled with rising costs of transitioning to electric vehicles.
Experts warn that if the trend continues, parts of production may be relocated outside Germany, potentially affecting tens of thousands of jobs. Plants in Eastern Germany, heavily focused on combustion engine components, are considered especially vulnerable.
The situation is worsened by:
– Stricter EU climate regulations effective from 2025;
– Reduced exports to the U.S. due to tariff barriers;
– Rising energy costs, making German production less competitive.
The German government is considering support measures, including tax incentives for EV makers and subsidies for charging infrastructure.