Germany’s ruling Christian Democratic Union (CDU) faced crushing defeats in recent regional elections, including in the former leader’s home state, where its support collapsed to under 5%. Meanwhile, tens of thousands of automotive workers at major German carmakers—including Volkswagen, BMW, and Mercedes-Benz—are staging protests today, demanding government intervention to prevent mass job cuts. The industry’s crisis stems from fierce competition with Chinese electric vehicle manufacturers, whose cheaper and often more advanced models have slashed German car sales, forcing automakers to slash workforces. Union leaders are now pushing for state aid, trade barriers, or energy subsidies to protect Europe’s industrial base from further erosion.
CDU suffered heavy losses in two regional elections, including in home state of former leader Angela Merkel, where it polled just 4.9%Staying in Germany, tens of thousands of automotive workers at Volkswagen, BMW, Mercedes-Benz and other car brands are protesting on factory floors across the country today for government and management help to save their jobs. Volkswagen has announced plans to cut 100,000 jobs in the next three years and BMW and Mercedes are also slashing their workforce.The problem is a near-existential one: the rise of Chinese EV carmakers with their cheaper, and in some cases more advanced models, has thrown the German car industry into crisis. The Germans, who have been far slower to transition to electric vehicles, simply aren’t selling as many cars anymore and need to retool to keep up. The fears are reflective of wider concerns over Europe’s industrial base being eroded by Chinese competition. Union leaders – pointing to state support for Chinese car makers- are calling for government support, like energy subsidies and financial help, or putting up trade protections. Continue reading...
