Employment in Germany's automotive industry dropped to 691,500 by the end of June, marking the lowest headcount since 2005 after a 5.8 percent decline over the past year. Job losses hit suppliers of parts and accessories hardest, with workforces shrinking 7.6 percent, while vehicle manufacturers cut 6.1 percent of positions. Only makers of bodies, superstructures and trailers added staff, growing 10 percent to 42,800.
The broader manufacturing sector also contracted, with total employment falling 2.7 percent to 5.29 million. Machinery building remained Germany's largest industrial employer with 905,900 workers despite its own decline. German exports to China fell more than 12 percent in the first half of 2026, while shipments to the United States dropped roughly 6 percent.
The German Association of the Automotive Industry warned in May that up to 225,000 jobs could be lost by 2035.