Thousands of German automotive workers took to the streets on Monday in a wave of demonstrations, ignited by a mobilization call from the IG Metall union, to protest against widespread layoffs and the country's prevailing industrial policies. The protests, announced last month, saw participants from major employers including Volkswagen Group, Mercedes-Benz, BMW, and supplier Bosch, gathering in cities like Hannover where workers lit flares and waved union flags.
The German auto industry is currently grappling with a perfect storm of pressures, including intensifying competition from Chinese carmakers both in their home market and within Europe, rising production costs, and the looming threat of US tariffs. This backdrop has already forced Volkswagen Group to downgrade its annual profit forecast last Friday, following the approval of a new restructuring plan that could potentially double the total number of job cuts to a staggering 100,000 positions.
Mercedes-Benz had previously lowered its sales outlook this summer, having announced a series of cost-cutting and efficiency programs last year that include workforce reductions and the relocation of some production capacity from Germany to lower-cost countries such as Hungary. Meanwhile, BMW management reached a cost-reduction agreement with labor representatives in July that could impact up to 8,000 employees at its German plants, and automotive supplier Bosch is planning to eliminate an additional 13,000 positions over the coming years on top of 9,000 job cuts already announced.
Speaking on Monday at the Volkswagen plant in Wolfsburg, Daniela Cavallo, chairwoman of the group's works council, demanded that politicians take decisive action by imposing tariffs on Chinese hybrid vehicles, reducing industrial electricity prices, and introducing subsidy programs at the EU level. The demonstrations came just one day after the Christian Democratic Union, the party of German Chancellor Friedrich Merz, suffered defeats in regional elections in Mecklenburg-Western Pomerania and Berlin.
In a statement, IG Metall chairwoman Christiane Benner called for policymakers to provide a stable investment framework and affordable energy prices, advocating for a "Made in Europe" strategy to defend against unfair competition. She also requested financial support for component suppliers undergoing transition and the preservation of early retirement schemes. Benner warned that the restructuring planned by Volkswagen would have a massive knock-on effect on all German vehicle manufacturers, parts companies, and the entire industry, urging corporate executives to take responsibility for the automotive sector, its workers, and jobs. Volkswagen, Bosch, and Mercedes-Benz did not respond to requests for comment, while BMW declined to comment on the protests but stated it maintains continuous, constructive dialogue with employee representatives and social partners.