Frankfurt: Despite a year of searching, previous stints at big automotive suppliers and sending out about 50 applications, German software engineer Max Peil is still looking for a job.
Trained in computer vision, a critical part of autonomous and intelligent driving systems, Peil could once have expected to sail into a role at one of Germany’s industrial giants.
But years of stagnant growth in Europe’s biggest economy and increasingly fierce Chinese competition are now taking their toll on young engineers like Peil.
“Usually you just get rejected straight up,” the 30-year-old told AFP in the western city of Frankfurt.
“I’ve had one interview. It was the same with my friends, one has sent over 60 applications.”
Known the world over for cutting-edge technology and innovative design, Germany’s car industry, powered by exports, has so far managed to avoid the drastic decline seen in countries like Britain, France and Italy.
But Chinese carmakers like BYD and Xpeng have eaten into German carmakers’ sales in the world’s largest auto market, leading to painful adjustments at home.
“Ten years ago, we made about six million vehicles a year and we’ve now stabilised at about four, 4.2 million,” transport economist Thomas Puls of the IW economic institute in Cologne told AFP.
“That’s good compared to other European countries, but we now need to accept that the golden age is not coming back.”
In a sign of the times, workers on Thursday protested at Volkswagen sites across the country over reports that Germany’s biggest carmaker is mulling up to 100,000 job cuts.
Total employment in the German automotive sector fell 8% in the five years to 2025, according to Federal Employment Agency data, even as it grew a little over 1% overall.
German industry as a whole is struggling against what some have dubbed the “China Shock 2.0” as the country’s firms shift away from low-value production and into making more high-tech goods, often at lower prices. This is pushing German companies out of once reliable export markets.
Total German exports were last year €1.56 trillion (US$1.78 trillion), down almost 2% from a 2022 peak, according to data from statistics office Destatis.
Meanwhile, exports to China plunged almost a quarter to €81.3bil over the same period. — AFP
