Germany Faces Crossroads in Shift Away from Car-Centric Mobility

Germany's automotive sector is experiencing significant challenges, as global competition intensifies and the environmental impact of private car usage becomes more evident. The dominance of motorized individual transport has led to considerable emissions of greenhouse gases, microplastics, noise, and nitrogen oxides. Decades of calls from environmental groups and labor unions for systemic change have gone largely unheeded, with large-scale subsidies and expanded production favoring traditional car manufacturing over integrated, sustainable mobility solutions.

Recent years have seen the rise of China's automotive industry, which now surpasses Germany and Japan in global exports and supplies a growing share of electric vehicles to the European market. In contrast, German automakers have focused production on larger, combustion-engine vehicles, neglecting smaller and more resource-efficient models despite consumer demand. This approach has resulted in a saturated market, declining sales, and mounting financial strain on the industry and its workforce.

Job losses are accelerating, with thousands of positions in the automotive, steel, and chemical industries disappearing each month or relocating to other countries. Major manufacturers are shifting production abroad, and some domestic plants face closure. These developments have significant social and economic implications, particularly for workers in industrial regions. The situation is exacerbated by shifting international trade policies and reduced demand in key export markets.

Amid these changes, experts and advocacy groups are calling for a fundamental transformation of Germany's mobility and industrial policies. They argue for a transition from a car-dominated system toward a diversified, environmentally responsible transport network. Key proposals include comprehensive investment in public transport, cycling, and pedestrian infrastructure, a restructuring of automotive taxation to incentivize smaller vehicles, and the introduction of job tickets as alternatives to company cars.

Policy recommendations also emphasize the need for shorter working hours, a halt to new road construction, and the development of regional economic cycles. There is a growing call for democratizing industrial planning through the creation of transformation councils that include representation from labor unions, advisory bodies, scientific experts, government institutions, and environmental organizations. These councils would have input on major investment decisions and help ensure that industrial change serves economic, social, and ecological interests.

Studies indicate that expanding public transport and cycling could create up to 314,000 new jobs across the rail, bus, and bicycle industries, offsetting losses in automotive manufacturing. Accompanying measures, such as a four-day workweek with reduced hours, are proposed to support this transition and alleviate job insecurity among affected workers.

For a successful transformation, stakeholders stress the importance of linking industrial policy with social justice and environmental protection. Mobilizing broad public support, including through alliances between labor, environmental, and social organizations, is seen as essential to achieving a more sustainable and equitable mobility future for Germany.