Germany’s automotive industry is transitioning from combustion engines to electric mobility, signalling the end of an era. The shift is driven by the European Union’s stringent CO2 emissions standards, which are forcing car manufacturers to shift to electric vehicles (EVs). Volkswagen, for instance, will stop selling combustion engine cars in Europe by 2035.

This transition is not without its challenges. Germany is home to approximately 600,000 jobs directly linked to the production of combustion engines. The shift to EVs, which require fewer parts and less labour to manufacture, could lead to significant job losses. Unions are therefore pushing for a ‘just transition’ that will protect workers.

There are also concerns about the country’s power grid’s capacity to support a surge in EVs. The German government has set a target of having seven to ten million EVs on the road by 2030, which could strain the grid. However, some experts argue that smart charging could help manage the load.

The future of Germany’s car industry will be shaped by how it navigates these challenges. The transition to electric mobility is not just about technology; it’s also about managing the social and economic impacts. The country’s ability to successfully make this shift will determine its position in the global automotive industry.

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