German carmakers cut jobs as Chinese rivals gain ground in Europe

Germany's leading carmakers have begun a large-scale wave of job cuts as Chinese brands rapidly expand their presence in the European market, Report informs with reference to the Financial Times (FT).

According to the Financial Times, Volkswagen is considering cutting up to 100,000 jobs by 2030, equivalent to about one-sixth of its total workforce. Mercedes-Benz, for its part, has refused to pay summer bonuses and launched voluntary redundancy programs already used by about 5,500 employees.

In addition, Mercedes-Benz has calculated that production could immediately rise by 15% if staff returned to a 40-hour working week instead of the 35-hour week that has been in place for more than 30 years.

BMW has also revised its profit forecast downward, citing weaker demand in the Chinese market and the consequences of the conflict with Iran. The company is preparing job cuts that could affect up to 10,000 employees.

Since mid-June, BMW shares have fallen by 13%, while investors expect further downgrades from other European carmakers.

The FT noted that although new car sales in Europe rose by 4% year-on-year, Volkswagen, Mercedes-Benz, Stellantis and Renault lost part of their market share in May. At the same time, the combined market share of Chinese carmakers, including BYD and Chery, exceeded 10% for the first time.