Alarm over industrial hollowing-out: German automotive industry investment and jobs accelerating overseas

⑴ The German Association of the Automotive Industry warned on Tuesday that as investment and jobs flow overseas, Germany's status as an automotive industry hub is at risk of being hollowed out. ⑵ According to the association's survey, 72% of the companies surveyed plan to reduce investment in Germany, specifically by shifting investment abroad (28%), postponing investment (25%), or canceling investment altogether (19%). ⑶ The survey also shows that the German automotive industry is experiencing widespread layoffs. Last year, among the 124 companies surveyed, nearly two-thirds reduced positions in Germany, with 87% attributing the reason to competitive disadvantages. ⑷ Currently, 49% of companies are laying off employees in Germany, while only 7% are doing so overseas. ⑸ The association's president stated: "Germany is experiencing a massive business location crisis." She warned that the outflow of investment and jobs would impact Germany's prosperity as well as its social and political stability. ⑹ She criticized the EU's package of measures aimed at supporting European automakers in transitioning to electric vehicles and greener production. ⑺ She called for market-driven incentives instead of regulatory obligations, stating: "As an automotive nation, we absolutely cannot be satisfied with the current proposals."