Auto Industry Meltdown

The German automotive industry faces a severe crisis marked by substantial job losses and the decimation of its supplier network. Major automotive companies like Volkswagen, BMW, and Mercedes-Benz are implementing cost-cutting measures that disproportionately impact workers. These actions are often framed as necessary for the transition to electric vehicle (EV) production, but they primarily serve to boost profits for shareholders. The shift to EVs requires fewer workers due to simpler manufacturing processes, leading to significant staff reductions. Simultaneously, German automotive companies are expanding production in low-wage countries like China and Eastern Europe, further exacerbating the situation in Germany. The supplier industry, heavily reliant on traditional combustion engine components, is facing widespread insolvencies as demand shifts towards EV parts. The trade unions and works councils are complicit in these developments, collaborating with management to implement job cuts and suppress worker resistance. They promote a narrative of "structural change" to justify the destruction of jobs and the erosion of working conditions. The unions prioritize maintaining a cooperative relationship with management over defending the interests of their members. The article warns that these developments are part of a broader capitalist offensive against the working class and calls for the formation of independent rank-and-file committees to fight for jobs and defend wages and conditions. find the original article here: https://www.wsws.org/en/articles/2025/05/14/bbud-m14.html