Germany's Auto Giants: 186K Jobs Lost, New AI Roles Emerge

WBN " The Work Recode Series " explores the changing relationship between people, jobs, machines, and AI

By Elke Porter | The Work Recode Series Column | June 3, 2025
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As automotive giants in Germany accelerate their shift towards artificial intelligence, an industry at a crossroads is witnessing a seismic shift in employment.

From Audi’s announced 7,500 job cuts to Mercedes-Benz’s AI-driven manufacturing improvements, the transition to AI-powered automotive production is reshaping the job landscape across Munich, Stuttgart, and beyond. The industry is balancing innovation with significant workforce upheaval, as traditional roles become automated or evolve into high-tech specialties.

This transformation not only impacts thousands of workers but also signals a competitive race with Tesla and Chinese automakers vying for dominance in AI and electric vehicle markets. Industry insiders warn that while opportunities for new roles are emerging, the path to the future requires strategic workforce adaptation.

Industry Transformations: Job Replacements & New Opportunities

• Major Job Cuts Announced:
  • Audi plans to cut 7,500 jobs in assembly and quality control, emphasizing automation in their factories.
  • Mercedes-Benz is deploying AI for visual inspections, reducing manual oversight in manufacturing lines.
  • BMW moving from human-driven tests to AI simulations, decreasing test driver positions significantly.

Special Mention on Volkswagen as seen in their Newsroom: The mobility of the future will be shaped by the automation of driving functions. Assistance systems are already in use in various areas – Volkswagen aims to enable fully-automated driving for large numbers of people in the high-volume sector. The crystallisation project being Trinity: the car will be available as of 2026 and will allow highly automated driving in line with level 2+ up to fully automated driving in line with level 4. But what exactly are the five different levels of automated driving? Allow us to explain.

Level 1: assisted driving
Level 2: partially automated driving
Level 3: highly automated driving
Level 4: fully automated driving
Level 5: autonomous driving

Industry Transformations: Job Replacements & New Opportunities

• Major Job Cuts Announced:
  • Audi plans to cut 7,500 jobs in assembly and quality control, emphasizing automation in their factories.
  • Mercedes-Benz is deploying AI for visual inspections, reducing manual oversight in manufacturing lines.
  • BMW moving from human-driven tests to AI simulations, decreasing test driver positions significantly.
• Roles Being Rewired:
  • AI-Enhanced Engineers now collaborate actively with machine learning tools.
  • Digital Production Specialists are retraining to manage AI-monitored manufacturing systems.
  • Virtual Testing Coordinators use AI simulations for vehicle development.
  • Smart Mobility Analysts analyze AI-generated customer insights, replacing traditional sales roles.
• Watch for Emerging Jobs (less than 18 months old):
  • Automotive AI Ethicist – overseeing ethical decision-making in autonomous cars.
  • Human-Machine Interface Designer – crafting user experiences for AI-assisted luxury vehicles.
  • EV Battery AI Engineer – optimizing battery performance with AI for better charging and longevity.
  • Autonomous Fleet Manager – managing AI-controlled car-sharing fleets.
  • Predictive Maintenance AI Specialist – utilizing machine learning to prevent breakdowns.

For more insights, visit VDA - German Automotive Industry Association.

The Great German Divide: Winners & Losers

Winners:

• Software and AI engineers at Mercedes developing voice assistants and chatbots.
• Data scientists creating autonomous driving algorithms at BMW.
• AI researchers optimizing electric performance at Porsche.
• Digital transformation managers driving innovation across brands.

Losers:

• Traditional assembly line workers, with an estimated 186,000 job losses by 2035.
• Automotive suppliers unable to adapt to AI integration.
• Internal combustion engine experts and manual inspectors facing obsolescence.

Learn more about industry challenges at Reuters’ Automotive Section.

Company Deep Dives: Strategies & Initiatives

Mercedes-Benz: The AI Luxury Innovator

• Showcased new in-car AI voice assistants at CES 2024, collaborating with ChatGPT.
• AI manufacturing has cut defect rates by 40%.
• Emphasizing hiring of machine learning engineers and UX designers.

Volkswagen: Scale & Software Shift

• Managing the AI transition with huge plant closures and layoffs.
• Investing heavily in software talent to develop "Volkswagen.OS", their proprietary AI platform.

BMW: Balancing Innovation & Tradition

• Using AI for predictive maintenance and expanding autonomous-vehicle R&D centers.
• Retains many traditional roles but adds AI oversight positions.

Audi & Porsche: Premium AI Focus

• Luxury brands focusing on high-end AI features, justifying premium pricing.
• Smaller, highly-skilled workforce concentrated on AI integration.

Explore more on Automotive News.

Ripple Effects: Small Business & Workforce Skills

• Suppliers face a stark choice: adopt AI or risk bankruptcy.
• New opportunities for AI consulting firms serving automakers.
• Traditional repair shops embracing AI diagnostic tools.
• Car dealerships hiring "AI experience specialists" for customer engagement.

In-demand skills include:

• Python programming for automotive AI.
• Computer vision for autonomous systems.
• IoT connectivity for smart cars.
• Cybersecurity defending vehicle data.
• Human-AI interface design for premium vehicles.

Stay ahead by following European Mobility Workforce.

Policy & Future Outlook

• The German government’s €3 billion automotive transformation fund aims to support displaced workers.
• IG Metall union negotiates AI transition protections and vocational retraining programs.
• EU regulations pushing for safety and ethical standards in automotive AI create new roles.

Hydrogen as a Wild Card:

• BMW and Mercedes are investing in hydrogen fuel

TAGS: #Recode Series #AI at Work #The Work Recode #German Auto #Automotive AI #Job Transformation #Future Of Work #WBN News Global #WBN Ai #Elke Porter

Connect with Elke at Westcoast German Media or on LinkedIn: Elke Porter or contact her on WhatsApp:  +1 604 828 8788