By Christoph Steitz and Rachel More
FRANKFURT/BERLIN, Sept 21 (Reuters) – German auto workers staged nationwide protests on Monday, less than three days after a shock profit warning by Europe’s biggest carmaker Volkswagen highlighted the sector’s unprecedented challenges from high costs and fierce Asian rivals.
The protests at Volkswagen, BMW and parts supplier Bosch come as Germany’s most important industry faces painful job cuts, possible production relocations and even plant closures, a crisis that was also reflected in the result of two state elections on Sunday.
Volkswagen alone plans to slash another 50,000 jobs as part of its biggest-ever turnaround agreed with stakeholders earlier this month, averting a full-blown dispute with powerful unions that still repeated calls on management to fix the issues.
Volkswagen works council chief Daniela Cavallo and IG Metall union head Christiane Benner called for stronger protection against unfair competition from China, a more effective European Union subsidy policy, and the continuation of a phased retirement programme.
“We expect corporate leaders and management teams to take responsibility for Germany as an automotive nation, for employees and for jobs,” Benner told workers at Volkswagen’s headquarters in Wolfsburg.
European automakers are facing increased competition from Asian rivals abroad and at home, creating a major problem for Volkswagen, which is already battling overcapacity on the continent, US tariffs and plunging profits in China.
Volkswagen on Friday cut its profit margin outlook for 2026 to 1% at the most, blaming the sluggish Chinese market and higher provisions for retirements, but also sobering expectations for its Porsche sportscar brand.
Part of the problem was accelerated demand for less profitable electric vehicles, underscoring the sector’s ongoing dependence on combustion engines that have for decades fuelled Germany’s top economy.
“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,” Horst Ott of trade union IG Metall said.
Volkswagen shares, which were excluded from the benchmark Euro Stoxx 50 index on Monday, were 1% lower at 0938 GMT, while Porsche’s stock fell 1.6%, extending Friday’s declines.
Shares in Porsche SE — Volkswagen’s biggest shareholder, which also slashed its outlook on Friday — were 3.4% lower.
($1 = 0.8715 euros)
(Reporting by Christoph Steitz and Rachel More; Editing by Ludwig Burger, Thomas Seythal and Jan Harvey)
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