At one manufacturing unit in East Germany, they’re pumping out a automotive half each second, chopping and urgent hundreds of thousands of items destined for the nation’s mega motor trade.
The HENNgineered plant sits on the sting of Zwickau, a metropolis the place the automotive is king. And in the case of autos, America is Germany’s most necessary buying and selling associate.
In 2024, automotive exports to the US reached a complete worth of €36.8bn (£30.7bn), in keeping with the German Vehicle Affiliation.
So, Donald Trump’s determination to introduce 25% tariffs on all passenger automobiles and light-weight industrial autos imported into the US is a giant downside for producers and suppliers alike.
Picture:
Trump’s tariffs may show a giant downside for automotive producers and suppliers like HENNgineered in Zwickau
Picture:
This manufacturing unit makes a automotive half each second, chopping and urgent hundreds of thousands of items
Picture:
There are fears about future jobs after Donald Trump introduced newest tariffs on automotive imports
“Such tariffs would be very hard. It could make companies decide to move to the US to produce there, which might also mean jobs are lost here in Germany,” explains website supervisor Matthias Wissel.
Volkswagen is now the principle native employer, offering round 10,000 jobs.
However automotive constructing is in folks’s blood, with the primary automobile made right here round 120 years in the past.
The town museum proudly shows automobiles by way of the ages.
One room hosts shiny silver racing automobiles, one other brightly colored Trabants.
Picture:
The August Horch Museum in Zwickau showcases town’s lengthy historical past of automotive making
The town developed automobiles from the German empire proper by way of to the present trendy republic, explains Thomas Stebich, head of August Horch Museum.
Whereas the stainless automotive shows have a good time town’s pioneering previous, tariffs are making many really feel unsure concerning the future.
“If nobody in the US buys a German car or less people buy German cars, it will have an impact, of course, because we need to build high numbers of cars here [for jobs],” Stebich says.
Spreaker
This content material is supplied by Spreaker, which can be utilizing cookies and different applied sciences.
To indicate you this content material, we’d like your permission to make use of cookies.
You should utilize the buttons under to amend your preferences to allow Spreaker cookies or to permit these cookies simply as soon as.
You’ll be able to change your settings at any time through the Privateness Choices.
Sadly we have now been unable to confirm you probably have consented to Spreaker cookies.
To view this content material you need to use the button under to permit Spreaker cookies for this session solely.
Allow Cookies
Enable Cookies As soon as
If you wish to perceive how key the auto trade is to German identification, suppose mining to the UK in its heyday.
Round 700,000 persons are employed within the trade, which generates greater than 540 billion euros in gross sales a yr.
However tariffs aren’t the primary storm German automotive producers have needed to climate.
Excessive power and labour prices, competitors from China and weaker home demand because of the ailing economic system imply the German automotive trade has been chopping jobs.
Audi lately introduced it can reduce 7,500 administration jobs by 2029.
By 2030, VW will lose 35,000 roles.
A consultant on the VW works council in Zwickau cancelled our interview because of disaster talks.
All the employees we met appeared pessimistic and deeply anxious for the plant and town’s future.
Their concern is shared by Aliriza Oernek, who owns 4 eating places in Zwickau.
He says lately they’ve seen lots of their younger folks go away the realm to hunt jobs elsewhere. He fears contemporary ache from tariffs will damage the entire group.
“Volkswagen is the biggest employer in Zwickau, the main source of money for people who live here. If they were to disappear, then people won’t stay in the town anymore,” he says.
Picture:
Aliriza Oernek, owns 4 eating places in Zwickau, and worries that tariffs will damage companies like his
Like its counterparts, Volkswagen is intently watching developments round tariffs and assessing how they might affect the availability chain and manufacturing.
All eyes are at the moment on the European Union to see the way it will retaliate.
In an announcement, a spokesperson for VW Group stated they “share the assessment of most experts that US tariffs and any counter-tariffs will have negative consequences for growth and prosperity in the US and other economic areas… and continue to advocate for constructive talks”.
So, whereas automotive makers brace for affect, Germany’s vowed it can “not take this lying down”, calling for a “firm response” from the EU because it tries to guard its automakers from this new American assault.
