German company may lose 100,000 jobs due to coronavirus

German company may lose 100,000 jobs due to coronavirus

March 31, 2020 0 By autotimesnews

Welt estimates that around 100,000 jobs in Germany are at risk due to coronavirus and its effects on industry.

Demand for cars in Germany is falling because the country has been hit hard by the Covid-19 pandemic, and according to automotive market expert Ferdinand Dudenhöffer, production capacity in the country may be too large, which could lead to overcapacity of 1.3 million vehicles. funds.

German car production is expected to drop to 3.8 million cars this year compared to 5.1 million cars produced locally in 2019. Such a drop in production will be caused by a significant drop in demand and could amount to about 100,000 out of 830,000 jobs in Germany.

“We should expect a reduction in production capacity in the German automotive industry. Good 100,000 jobs can be at risk – twelve percent of today’s jobs are in companies and suppliers, ”Dudenhöffer said.

Dudenhöffer calls on the German government to do more to stimulate demand for new cars, in particular for electric cars and hybrid cars. The country currently offers an environmental bonus of up to € 6,000 ($ 6,676) for buyers of environmentally friendly vehicles, but other measures may be taken.