German auto workers protest job cuts, demand policy changes

VW restructuring could double job losses to 100,000

Thousands of German auto industry workers demonstrated Monday against job cuts and state industrial policy following a mobilization call by labor union IG Metall. The protests, which were announced last month, drew workers from Volkswagen, Mercedes-Benz, BMW and parts supplier Bosch.

The German auto industry is grappling with rising manufacturing costs, U.S. tariffs and intensifying competition from Chinese rivals, both in China and increasingly in Europe. Volkswagen on Friday slashed its earnings forecasts for the year after gaining approval for a fresh round of restructuring that could double the company’s total number of job losses to 100,000.

Mercedes cut its sales expectations over the summer after outlining plans last year to become more efficient through measures including job cuts and shifting some production from Germany to lower-cost countries such as Hungary. BMW executives reached an agreement with labor representatives in July to cut costs that could affect up to 8,000 workers in Germany. Parts supplier Bosch plans to cut 13,000 jobs over the next few years, on top of 9,000 previously announced.

Speaking at Volkswagen’s Wolfsburg plant Monday, Daniela Cavallo, who leads Volkswagen’s Group Works Council, said politicians must act with tariffs on Chinese hybrid vehicles, cuts to industrial electricity prices and an EU-wide subsidy policy, among other things.

IG Metall Chairwoman Christiane Benner laid out broader union demands in a statement: “From policymakers, we expect a reliable framework for investment, affordable energy, and the promotion of a ‘Made in EU’ approach, protection from unfair competition, financial aid for suppliers undergoing restructuring, and the preservation of early retirement schemes.”

“The restructuring planned at Volkswagen will have enormous repercussions for all manufacturers and suppliers in Germany, as well as the broader industry,” Benner said. “We expect top management and executives to take responsibility for Germany’s automotive industry, its employees, and its jobs.”

The protests came the day after Chancellor Friedrich Merz’s Christian Democratic Union party suffered election defeat in the states of Mecklenburg-Western Pomerania and Berlin.

Volkswagen, Bosch and Mercedes did not reply to requests for comment. BMW declined to comment on the protests but said it maintains “an ongoing and constructive dialogue with employee representatives and social partners.”