News24 | German auto workers protest as Volkswagen warning rocks sector

An employee at the Volkswagen engine plant in Chemnitz whistles during a protest rally on Monday 21 September. 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

Hendrik Schmidt/picture alliance via Getty Images

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‌German auto workers staged nationwide protests on Monday, less than three days after a shock profit ‌warning by Europe's biggest auto ⁠maker 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.

"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.

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.

Volkswagen shares were 0.6% lower on Monday morning, while Porsche's stock fell 2.3%, extending ⁠Friday's declines.

Shares in Porsche - Volkswagen's biggest shareholder, which ‌also slashed its ‌outlook on Friday - were 2.9% lower.