Mayor require support for Germany's auto industry!

Mayor require support for Germany's auto industry!

In a joint initiative, 15 mayors from leading car cities in Germany today addressed a claim paper to EU Commission President Ursula von der Leyen. This initiative entitled "Mayor for a strong automotive location" aims to secure the international competitiveness of the German auto industry and to protect the over 600,000 jobs that depend on the regions involved on this industry. The cities involved include Stuttgart, Wolfsburg, Friedrichshafen and Saarbrücken. This initiative takes place against the background of a worrying de-industrialization, which puts pressure on the automotive industry in the EU, such as "https://www.merkur.de/wirtschaft/deindustrialization-eu-unt-druck-autosta-zent-zuhnender-93565262.html"> Merkur

In the claim paper, seven central points are included. The mayors require a clear commitment to the automotive and automotive supplier industry as a key industry. Furthermore, it is required that a ban on combustion engines is rejected and that the openness is maintained for various drive technologies. The support for electromobility and climate-friendly drive types, such as plug-in hybrids, are also emphasized. The mayors also call for the creation of the same competitive conditions within Europe and the suspension of penalty payments for companies that do not achieve CO₂ fleet limit values.

challenges of the auto industry

The German automotive industry faces numerous challenges: a shrinking sales, high costs, bureaucracy and long approval procedures. In addition, there is a shortage of skilled workers and the pressure to adapt to new market conditions. According to an analysis of the market, German car suppliers are crucial for global vehicle production. However, their position is threatened because the competition among suppliers has intensified. German companies such as Bosch, ZF and Continental, which are among the ten strongest sales suppliers worldwide, see themselves exposed to pressure from home and abroad, more efficient production methods, especially with regard to electromobility and software-defined vehicles, such as car newspaper determined.

The fact that Bosch has announced that it has announced that Bosch has announced 12,500 jobs is to delete 7,150 jobs. ZF even intends to reduce up to 14,000 jobs in Germany and checks the competitiveness of its 50 locations. These developments throw a shadow on the future of automotive suppliers who have to adapt to the market changes and drive innovations to remain competitive.

The European automotive market in change

The transformation process of the European automotive industry is currently influenced by a variety of factors. The electrification and development of new technologies are absorbed, while the geopolitical tensions and the high energy costs in Europe, which are 2-3 times higher than in China or the USA, have additional challenges. According to an analysis of McKinsey & Company, the European auto industry, measured by sales, is three times the size of Chinese and employs almost 14 million people - a significant share in the European labor market.

Europeans have lost market shares in both Europe and China in recent years, while the Chinese manufacturers have expanded their share to over 45%. In addition, new competitors, especially in the e-car segment, have played an important role. The current trend shows that European manufacturers are planning more than 150 new battery -electric vehicles by 2030 to keep up with global developments. A master plan to improve the competitiveness of the European automotive industry is therefore considered essential to master the challenges of the future.

The mayor's initiative could be seen as a first step to actively shape the change in the industry before the momentum of the transformation further endangers the automotive industry in Europe.