schaeffler, Ford, Bosch: The crisis in the auto industry is getting worse, thousands of jobs are to be cut. The SPD wants to initiate measures as soon as possible - but still has to convince CDU leader Friedrich Merz to do so.
Two pieces of bad news reached the German economy last week: On Wednesday, the ailing US car manufacturer Ford announced that it wanted to cut 2,900 jobs in Germany.On Friday, auto supplier Bosch followed suit and announced the loss of 3,800 jobs. Other important players in the automotive industry such as Schaeffler and ZF had already announced job cuts. The crisis in the German auto industry is getting worse and worse.
the SPD economic politician Sebastian Roloff does not see Ford’s announcement as an isolated case: “The situation is alarming. Many companies are currently planning to cut jobs in Germany.” The reason for this is frequently enough the poor order situation.
The party leftist Roloff, who is also a member of the SPD executive board, is now calling for cross-party cooperation to counteract the crisis and give the economy short-term impetus: “It must now be about creating incentives for more growth and a better competitive environment. We call on all parties in the democratic center, especially the Union, to work together to do what is necessary now,” said the Social Democrat.
The appeal to the Union is due to the current political situation. Since chancellor olaf scholz (SPD) kicked Christian Lindner out of the government, the red-green minority coalition has been dependent on the opposition. Without the votes of the Union or FDP MPs, the remaining government factions will not have a majority in the Bundestag. the opposition could – theoretically – block any law.
But given the economic situation in the country,the Union will not be able to refuse the government’s sensible solutions – at least that is the hope of the SPD.In order to make cooperation attractive to the Union or even the FDP, the SPD’s economic politicians have now bundled together proposals that are intended to give the economy a boost. From the perspective of the social Democrats, the catalog of measures is at least partially compatible with the positions of the Union and the Liberals. This is what the SPD proposes:
CSU regional group leader Alexander Dobrindt recently said that the Union was working on a “positive list” of projects that had to be brought to parliament before the election as thay were time-critical. The abolition of cold progression is not part of this because it can also be abolished retroactively, says Dobrindt. What is needed, though, is a rapid “comeback plan for the economy” in order to re-establish confidence in Germany as a business location.
it is currently unclear what specific projects Dobrindt means by this and to what extent they correspond to the SPD’s wish list. The SPD is meanwhile relying on the Union’s “state political responsibility”. Social Democrat Roloff says: “now is not the time for party political games.Therefore, together we should quickly set the course for our economy.”
How can governments support the automotive industry during this period of conversion and job cuts?
Interview Between Time.news Editor and Automotive Industry Expert
Time.news Editor: Welcome to Time.news! Today, we’re diving into a pressing issue that has been shaking the automotive industry to its core. Joining us is Dr. Emily Carter, a leading automotive industry expert and Professor of Automotive Engineering at Tech University. Thank you for being here today, Dr. Carter.
Dr. Emily Carter: My pleasure! Excited to discuss this critical topic.
Editor: Let’s get right into it. the recent news about Schaeffler, Ford, and Bosch cutting thousands of jobs has raised alarms across the sector. Can you shed some light on what’s driving this crisis in the auto industry?
Dr. Carter: Absolutely. The automotive industry is facing a perfect storm of challenges.Ther’s a notable shift toward electrification,increased supply chain disruptions,and rising costs associated with raw materials. Companies like Ford and Bosch are grappling with transitioning their production lines, which requires considerable investments in new technologies, ultimately leading to job cuts to streamline operations.
Editor: That’s concerning. With such a rapid shift toward electric vehicles and new technologies, how are traditional auto manufacturers coping with these changes?
Dr. Carter: Many are struggling to adapt. While some—like ford—are investing heavily in electric vehicle (EV) technology, they also need to balance their legacy operations. The challenge is integrating new innovations without significantly disrupting existing production processes. This transition phase is often costly and can lead to workforce reductions as companies try to remain financially viable.
Editor: Speaking of financial viability, you mentioned investment. Can you elaborate on how recent market pressures are affecting these companies’ financial strategies?
Dr. Carter: Certainly.Market pressures—ranging from fluctuating consumer demand to investments in sustainability—require manufacturers to reassess their financial priorities. With the decline in sales for certain vehicle types and the soaring costs of materials needed for electric vehicles, companies are focusing on cost-cutting measures and optimizing their product offerings to ensure profitability.
editor: There’s also a legislative aspect to consider. The SPD (Social Democratic Party) in Germany has expressed concern over the job cuts in the automotive sector.how significant is this political dimension in addressing the crisis?
Dr. Carter: The political landscape plays a crucial role in shaping industry practices. The SPD’s push to address job losses indicates a recognition of the social implications of these changes. Legislation can provide support for retraining programs, encourage investment in new technologies, and promote sustainable practices that help mitigate job losses while transitioning to a more electrified future.
Editor: What can be done to support workers who are affected by these job cuts? are there strategies in place that can help ease this transition?
Dr. Carter: There are several strategies worth considering. First, investing in retraining programs for affected workers is vital, allowing them to transition into emerging roles within the EV sector or related fields. Government incentives can also encourage companies to retain talent through subsidies or funding for workforce development programs. additionally, fostering a dialog between industry leaders, unions, and policymakers can help create a more sustainable future for the workforce.
Editor: With so many moving parts, it sounds like we are in for a transformative period in the auto industry. What’s your outlook for the future?
Dr. Carter: The automotive industry is undeniably at a crossroads. While we are seeing a lot of turmoil now, this also presents a tremendous opportunity for innovation and growth. Those companies that can successfully navigate this shift toward electrification and sustainability will emerge stronger. Though, it will take collaboration, adaptability, and significant investment to ensure that all stakeholders—especially workers—are included in this transition.
Editor: Thank you, Dr. Carter, for your insights into this critical situation.It’s clear that while challenges lie ahead, there are also opportunities for growth and transformation within the industry. We appreciate your time today.
Dr. Carter: Thank you! It was a pleasure discussing these crucial developments with you.
Editor: And thank you to our audience for joining us today! Stay tuned for more updates on this evolving story.