Labour union IG Metall warns German carmakers ahead of wage talks

Core Insights - IG Metall is preparing for wage negotiations with German carmakers, warning of potential escalation due to challenges in the automotive sector [1][5] - The German automotive industry is facing significant pressures, including competition from Chinese manufacturers, US tariffs, and lower-than-expected demand for electric vehicles [1][5] Group 1: Wage Negotiations and Union Influence - IG Metall represents a significant force in shaping strategic decisions within major German companies, holding half of the supervisory board seats [2] - The union has successfully negotiated to secure tens of thousands of jobs and investment commitments for German locations, despite employees foregoing billions of euros [3] Group 2: Industry Challenges and Job Cuts - The automotive sector has announced plans to cut nearly 100,000 jobs by 2030, with major companies like Robert Bosch, Volkswagen, and Ford leading the reductions [2][4] - Specific job cuts include Audi (7,500 roles), Continental (10,150 positions), Ford (1,000 jobs), Porsche (1,900 positions), Bosch (18,500 roles), Schaeffler (4,700 jobs), Volkswagen (35,000 positions), and ZF Friedrichshafen (14,000 roles) [4] Group 3: Market Conditions - German vehicle production has stagnated for three consecutive years, with output in 2025 projected to be approximately 11% below 2019 levels [5] - The rise of Chinese competitors, such as BYD, is increasing pressure on German car manufacturers both domestically and through imports [5]