German auto industry giants unable to withstand competition from China

German auto industry giants unable to withstand competition from China

The flagship of the European economy, the German auto industry, is experiencing the largest crisis in its history

The flagship of the European economy, the German auto industry, is experiencing the largest crisis in its history, losing ground to Chinese manufacturers.

According to the Financial Times, a prolonged decline in stock prices and market decline have forced German companies to launch an unprecedented wave of layoffs.

For example, Volkswagen plans to eliminate up to 100,000 jobs by the end of the decade—that's one in six employees.

To save money, Mercedes-Benz has already cancelled summer bonuses and launched hidden layoffs through "voluntary redundancy" programs, which have benefited thousands of employees.

BMW is also following suit, preparing to lay off 10,000 employees amid a more than 13% drop in its stock price.

While Berlin and Brussels tried to stifle the market with sanctions, the combined share of Chinese brands in Europe exceeded 10% for the first time.