More than 4,00,000 Jobs at risk in Germany – Here is why

Germany, a place for the world of automobile. It is the home to some of the best cars on the planet. People from all over the world have a craze for German-made vehicles. This is because these cars are well built; the quality and performance of these cars are the best there is. The primary reason why all these cars are looked upon is that they are made by some of the craftsmen in the business.

German-Made cars

For many years now Germany has earned a name for itself in the world of cars and this lead to an increase in job vacancy at the car manufacturing department. This journey that Germany took to become a car manufacturer pioneer has had no short cuts to date. They have been a country that are experts in manufacturing the early hot rods to the latest super cats that zoom through any part of the world. Initially, it was just manual labour where people come together to make the various components of the car. Once all the components that are required for the car are made they are assembled and shipped throughout the world. This process soon evolved and lead to having multiple manufacturing units for the same car manufacturer company in different parts of the country to meet with the demand that they had for the rest of the world.  


Now, what’s new?

As of 2018, it was estimated that around 834,000 number of people were working in the automobile industry alone. This is the most that the country has ever had in its history. While having so much job opportunities made and used in an effective way seemed to be great news for car manufacturing and the people of the country things might not just be the same anymore.   

Like all development, things have to evolve to make room for better things to take its place. Unfortunately for the automobile industry, it is a forced evolution than just a natural one. Due to the increase in pollution that is caused by cars that use furl car manufacturers are forced to come up with innovative ways to tackle the situation. One such innovation that prevailed and took over the throne was the concept of electric cars and bikes so much so that companies are even trying to bring air transport vehicles using the electrical engine concept.

Credits: Emirates-Business

How is it affecting jobs?

Changes are good, but not for everyone. With this need to improve and adapt the new concept it is estimated that more than 400,000 workers German jobs at risk due to switch to electric cars. Germany is going to one of the few countries that is trying to be the first in the space of making commercial electrical cars as they have always been one of the front runners of the best car manufacturers in the world. With them switching to making more electric cars it is only natural that there is going to be a great cost cut down the process for two major reasons. The need to invest a lot of money in buying new assembly and manufacturing units that are needed for the manufacturing of electric cars and not the conventional fuel cars id the first and foremost reason. While investing so much money means that everything will be mostly automated so the need for manual labour is brought down to a great extent.


Is it replacing humans?

Though investment cost and automation might be the major reasons, there are some more things that the company considers for making the switch.  Establishing themselves as an electric car manufacturer will bring in more investments from various investors as these German car manufacturers are well established. This also means there is less component that goes into making an electric car when compared to the fuel engine cars. So the maintenance needs are reduced resulting in less labour requirement. The global economy also has its hand in such change as the numbers of cars that are being sold around the country has gone down and these car manufacturers are not able to run as effectively as before.

After so much valuation and thought one of German’s major automobile bodies VDA said that approximately 410,000 workers jobs are at risk in the years 2020 as companies are trying to thrive and evolve with what they have left. The European Union is also pushing German in to move to the electric car manufacturing to reduce that will reduce and will eliminate the emission of carbon dioxide which is the major cause of pollution from automobiles.


Over the years the automobile industry has been the major contributor to the growth that Germany has seen over the years. So the country is pushing limits and is trying to save the industry as much as they could. Germany hopes that the changes will bring more opportunities for the country to grow even though it might cause a great cost cut down in many car manufacturing companies, which will affect a lot of their population.


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