Expert Warns of 100,000 Job Losses in Auto Supply Sector Following Bosch Cuts

Berlin - The automotive industry faces significant challenges as recent announcements from Bosch regarding the elimination of 13,000 positions have raised alarms about the potential for widespread job losses in the supply chain. Industry analyst Ferdinand Dudenhöffer predicts that approximately 100,000 jobs could be at risk among automotive suppliers.

Dudenhöffer indicated that after the major automotive manufacturers, the repercussions will extend to larger suppliers, creating a cascading effect likened to a domino collapse. He emphasized that medium-sized and smaller suppliers, along with machinery manufacturers, are particularly vulnerable to these developments. He forecasts that by 2030, the total number of jobs lost in the supply sector could reach around 100,000, with the risk of insolvencies among smaller suppliers becoming a stark reality.

In reflecting on the state of the industry, Dudenhöffer lamented that the prospects for job recovery in Germany are virtually nonexistent, attributing this to high operational costs and a lack of competitiveness. He criticized the current economic strategies, suggesting that Germany has squandered its prosperity.

Data from Dudenhöffer reveals a troubling trend: employment in the automotive sector has dwindled significantly from 834,000 in 2019 to just 720,000 by August 2025. This represents a loss of 114,000 jobs, or a 14% decline, over a span of six years. Dudenhöffer asserts that this decline is unlikely to reach a halt anytime soon.

Jürgen Mindel, the managing director of the German Association of the Automotive Industry (VDA), highlighted contributing factors to this crisis. He noted that demand in both Europe and the United States remains weak, compounded by a challenging economic environment in Germany. Additionally, the rise of global protectionism and geopolitical uncertainties, illustrated by U.S. tariffs, are further straining suppliers.

Mindel elaborated on the complexities facing businesses in Germany and Europe, pointing out the burdens of excessive regulation, high energy costs, and lengthy approval processes, which deter investment. A survey among VDA members revealed that three-quarters of companies are reconsidering their planned investments in Germany, with many choosing to postpone or relocate these efforts. Over half of the surveyed companies also reported ongoing job cuts.

The combination of these challenges is expected to have profound implications for both prosperity and employment across the industry. The current climate raises critical questions about the future of Germany's automotive sector and its potential for recovery.