Nationwide mobilisations across German plants

More than 100,000 automotive employees joined rallies across more than 200 German locations on Monday, organized by the trade union IG Metall. In Sindelfingen, around 20,000 workers assembled outside the Mercedes-Benz production facility, which employs over 30,000 people and produces the S-Class. At the Continental spinoff Aumovio in Frankfurt, approximately 700 participants gathered alongside German Trade Union Confederation deputy chairman Stefan Körzell. Further demonstrations took place across sites belonging to BMW, Audi, Porsche, Bosch, Mahle, Daimler Truck, and Jost-Werke. Works council leaders and union representatives used the assemblies to register opposition to job cuts, plant relocations, and proposed changes to working conditions.

“Due to lethargy and disastrous misjudgements, most managers have failed to keep pace with developments in e-mobility, digitalisation and battery technology, thereby causing the German automotive and supplier industries to fall behind.”

Disputes over working hours and production costs

Carmakers are seeking to extend the standard workweek from 35 to 40 hours without salary increases to reduce domestic manufacturing expenses. A study by the consulting firm Oliver Wyman shows that labor costs in Germany average $3,307 per vehicle, compared to $769 in Japan and $597 in China. Union officials firmly rejected the 40-hour proposal, maintaining that the 35-hour week negotiated in the 1980s and 1990s remains a core standard. Ferdinand Dudenhöffer, director of the Center for Automotive Research in Bochum, reported that industry employment declined from around 830,000 in 2018 to under 700,000, projecting a further reduction to 500,000 by 2030. Planned workforce reductions include 100,000 global positions at Volkswagen by 2030 (amounting to 15% of its workforce) and up to 8,000 positions at BMW by the end of 2027.

Germany3,307

Japan769

China597

Germany

3307 $

Japan

769 $

China

597 $

Data from the article text

Profit revisions and commercial pressures

The industrial actions follow an earnings revision on Friday, when Volkswagen reduced its 2026 profit margin target to 1% at most. The group cited a sluggish Chinese market, higher retirement provisions, lower expectations for its Porsche brand, and shifting demand toward electric vehicles. In Monday morning trading, Volkswagen shares declined 0.6%, Porsche shares fell 2.3%, and holding company Porsche SE dropped 2.9%. Works council chief Daniela Cavallo and IG Metall leadership called on European Union and German policymakers to deliver protection against Chinese market competition, lower industrial electricity prices, and structured subsidy policies.

“We expect corporate leaders and management teams to take responsibility for Germany as an automotive nation, for employees and for jobs.”

Bargaining timetable and political pressures

The labor mobilization coincided with political difficulties for Chancellor Friedrich Merz, whose conservative party suffered state election defeats on Sunday in Mecklenburg-Western Pomerania to the AfD and in Berlin to Die Linke. Union representatives announced that IG Metall will formalize its collective bargaining demands for Baden-Württemberg on 22 September. Official negotiations are scheduled to begin on 7 October in Ludwigsburg. The existing wage agreements and statutory peace obligation expire on 31 October, opening the possibility of formal warning strikes across the sector in November.