Frankfurt (Germany) (AFP) – German automotive workers held nationwide protests on Monday, calling for government and management action to protect jobs and factories as the car industry hits crisis point. Growing Chinese competition, compounded by weak domestic demand and US tariffs, has thrown the German car industry into crisis. Volkswagen plans to cut 100,000 jobs by the end of the decade, the biggest ever restructuring in global automotive history. Mercedes-Benz and BMW are also downsizing.
Tens of thousands of people were expected to take part in the protests, which the IG Metall union said would take place at over 280 sites across Germany. Speaking at VW’s iconic Wolfsburg factory, the largest in the world by floor area, IG Metall leader and VW supervisory board member Christiane Benner said: “Things have really hit the fan.” “Companies like VW, BMW, Audi, Bosch, Mercedes and Porsche were synonymous with fantastic cars and high quality,” she said. “Now, management is driving the industry at full throttle into a brick wall.”
Many blame the industry’s woes on the management for starting too late with the transition to electric vehicles and being too slow to invest in software. Others point to Chinese government support for its domestic carmakers, which many in Europe say has unfairly led to overcapacity in the global car industry. German Finance Minister Lars Klingbeil said last week he would press for the European Union to further protect the continent’s carmakers from Chinese competitors, saying it was important to not be “naive”.
Speaking on Monday, Benner called on the government to make energy cheaper, provide financial help for suppliers who need to retool, and promote domestic production with “Made in EU” rules. “Colleagues in these tumultuous times need to be able to count on the protection of comprehensive welfare and industrial policy,” she said.
– Painful truths –
Speaking after Benner, Daniela Cavallo, head of VW’s works council, told workers some “painful” truths. “Europe’s automotive industry will be remade,” she said. “Long-established carmakers will fall by the wayside. Others will have to merge.” “The battle over how to share the burden has already begun,” she added. “The question is not what we as employees will be asked to take, but rather how we collectively can distribute sacrifices fairly amongst ourselves.”
Wolfgang Schroeder, a political scientist at the University of Kassel who researches labour relations, told AFP that the protests were a sign of “real fear over the future of the industry”. “A nationwide action that is not related to pay negotiations or to specific disputes with companies but to a whole sector and its problems, that’s rather new,” he said.
© 2024 AFP
