The situation in the German automotive industry is alarming. After years of great success and record profits, many companies are now announcing layoffs and plant closures due to current competitive challenges. Misguided business decisions and a delayed transition to electric mobility must not be carried out at the expense of workers. This also jeopardizes public acceptance of the urgently needed mobility transition.
A socially responsible mobility transition also requires a forward-looking German automotive industry. At the same time, the industry can only have a bright future through an ecological transformation. The transformation of industrial work and value creation can only succeed if policymakers establish a clear framework and actively shape the transition in collaboration with companies.
The Alliance for a Socially Responsible Mobility Transition sees an urgent need for action:
1. Companies must adjust their model strategies and preserve their production sites.
Companies have failed to bring affordable and resource-efficient electric vehicles to market. As a result of this misguided product strategy, sales figures are falling short of expectations, and production sites are operating below capacity. German manufacturers and those producing in Germany, in particular, must defend this market segment against Asian competition. This is an investment in their future. In particular, smaller vehicle models that are affordable for all income levels must be produced in Europe.
In some cases, production sites in Germany are being closed and new plants are being built abroad, where lower environmental and social standards apply and taxes and wages are lower. The alliance expressly opposes such an approach. It severely jeopardizes public and employee support for the urgently needed transformation and shifts problems rather than solving them.
2. Policymakers must provide short-term support.
Instead of endlessly debating new climate protection targets or promoting pseudo-solutions like e-fuels, policymakers must ensure a reliable framework. The industry needs predictability.
Clear roadmaps are needed for the transformation of the automotive industry—ones that accelerate the mobility transition, affordable fleets, and climate protection, while also offering prospects to employees who feel uncertain or disappointed:
- Astronger focus on CO₂ in tax policiesfor the automotive sector promotes the sale of fuel-efficient and low-emission vehicles. Government subsidies should also be aligned with the CO₂ footprint resulting from production and transportation.
- Asocial leasing programcan make e-mobility accessible to broader segments of the population, complementing the urgently needed expansion of public transportation in rural areas. Such support should be based on social and environmental criteria—similar to the example set by France—without being limited to employed individuals. Furthermore, it should only be granted for vehicles manufactured in Europe. At the same time, it makes sense to resume additional and complementary subsidy programs, such as those for the purchase of electric cars by social institutions and services or for the purchase of electric buses.
- A newprogram for a nationwide charging infrastructure: The development of the charging infrastructure must be supported, particularly in rural regions and for low-income households, so that large segments of the population can benefit from the transition to electric vehicles. Binding guidelines for the accessible installation and expansion of the charging infrastructure, as well as simpler approval processes, are absolutely essential.
3. Key Policy Priorities for the Next Legislative Term
To ensure greater certainty and long-term, positive prospects for the automotive industry and its many employees, the new federal government should prioritize the following agenda:
- Enabling new value creation and employment: Through active industrial policy to attract new key sectors, transformation funds for small and medium-sized enterprises, and the preservation of business locations, affected regions and the supplier industry must be supported in the transition.
- Intensify continuing education:Existing tools must be actively utilized, and opportunities for skill development must be continuously expanded. The goal must be seamless employment with full pension eligibility.
The necessary transformation of the mobility system can only succeed in its entirety if, in addition to key areas such as the financing and expansion of rail and public transit, the shift to freight transport, and the redesign of urban traffic spaces, the German automotive industry also fully harnesses its potential in the area of sustainable mobility and positions itself in a socially responsible, innovative, and forward-looking manner. Speaking with one voice on behalf of labor unions, social, welfare, and environmental organizations, as well as the Evangelical Church in Germany, the Alliance for a Socially Responsible Mobility Transition therefore expressly advocates for an actively shaped transformation of the automotive industry and criticizes the fact that, instead of developing long-overdue, forward-looking, and long-term strategies, the debate is being distorted by short-term distractions.
The Alliance for a Socially Responsible Mobility Transition’s detailed position can be found inits position paper(2023). The paper addresses an important aspect of a social and ecological mobility transition. The Alliance’s recommendations for action on other key topics can be foundhere.
TheAlliance for a Socially Just Mobility Transitionbrings together expertise from labor unions (IG Metall, ver.di, DGB), social, welfare, and environmental organizations (VdK, SoVD, AWO, VCD, BUND, NABU), and the Evangelical Church in Germany (EKD) to jointly support the transformation of mobility in Germany. Together, the Alliance represents many millions of members and provides a platform for addressing issues surrounding a socially and environmentally sustainable mobility transition. The Alliance is funded and supported by the Mercator Foundation.
