IG Metall warned of possible escalation against German carmakers as it prepares for wage negotiations later this year, reported Bloomberg.
The German workers’ union is gearing up for discussions in the metal and electrical engineering sector, with pivotal talks expected in autumn.
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The negotiations come as manufacturers and suppliers grapple with intensifying Chinese competition, the effects of US tariffs and weaker-than-forecast electric-vehicle demand.
Employee representatives occupy half the supervisory board seats at major German companies, giving unions significant leverage to shape or halt strategic decisions.
The country’s automotive industry has faced a difficult year, marked by profit warnings and restructuring after producers pared back EV programmes.
Companies across the sector have announced plans to cut close to 100,000 jobs by 2030, with Robert Bosch responsible for the largest share.
At the union’s annual press conference, IG Metall chairwoman Christiane Benner said: “IG Metall, its works councils, and the employees have delivered. We have ideas, we are actively involved! The employees in our sectors are foregoing billions of euros. In return, we have succeeded in securing tens of thousands of jobs through negotiations and in securing investment commitments for German locations. Without us, things would already be very bleak for German industry!”
Volkswagen said last week that preliminary automotive cash flow for 2025 surpassed expectations, mainly because investment projects were delayed.
Supplier ZF Friedrichshafen also reported stronger cash flow after customers withdrew several EV initiatives.
Workforce reductions already outlined include Audi planning to eliminate 7,500 roles by 2029, Continental 10,150 positions, Ford 1,000 jobs at its Cologne EV facility.
Other companies are also planning major job cuts: Porsche will eliminate 1,900 positions by 2029; Bosch, 18,500 roles; Schaeffler, 4,700 jobs; Volkswagen, 35,000 positions by 2030; and ZF Friedrichshafen, 14,000 roles this decade.
Pressure from Chinese rivals such as BYD is rising both in China and through imports into Europe, while domestic vehicle production in Germany has stagnated for a third consecutive year.
Output in 2025 was roughly 11% below 2019 levels.
