The announcement came as official data showed unemployment rising to 6.6% in January—its highest level in 12 years—with more than three million people out of work, adding to concerns about slowing growth in Europe’s largest economy. The planned reductions underscore a deepening crisis in the automotive industry, which has been hit by high energy costs, the costly transition to electric vehicles and intensifying competition from Chinese manufacturers. The downturn is increasing pressure on Chancellor Friedrich Merz’s government to reassess Germany’s industrial and energy strategy, as manufacturers struggle to remain competitive.
