Germany’s largest automotive supplier, Bosch, has initiated Kurzarbeit (short-time work) at its Salzgitter plant following supply disruptions at Dutch semiconductor producer Nexperia.
According to trade union IG Metall, the decision highlights how dependent Germany’s car industry still is on timely chip deliveries. The “just-in-time” system that once guaranteed efficiency is now exposing deep vulnerabilities.
Other key suppliers are taking emergency measures as well. ZF Friedrichshafen, the country’s second-largest automotive supplier, has set up a taskforce to explore alternative supply chains with clients and partners. The domino effect of the global semiconductor shortage continues to challenge even the most established manufacturers.
A crisis far beyond microchips
The current bottlenecks come on top of long-term structural challenges that pre-date the chip crisis: rising production costs, the expensive shift toward electric mobility, and a noticeable drop in global demand.
Bosch’s Reutlingen facility plans to cut up to 1,100 jobs by the end of the decade. ZF has announced 14,000 redundancies in Germany by 2028, Continental 1,450 by 2026, while Schaeffler, Brose and Mahle have also reduced staff. The outlook for Germany’s traditional auto supply network remains bleak.
Industry analyst Frank Schwope told German media that the situation of many suppliers is “clearly worrying”. Union representatives from IG Metall warn that more closures could follow by 2026 if no turnaround occurs. Workers across the sector fear for their jobs amid the accelerating transformation of the car industry.
The human side of restructuring
Behind every announcement lies a personal story. At Bosch, many long-serving engineers and technicians are leaving under severance agreements. Some, like mechanical engineer Ralf Schinzel from Leonberg, see the transition as an opportunity to reinvent themselves.
After 33 years at the company, he plans to volunteer in social work for a year before returning to the labour market. “It’s tough to see the industry changing so quickly,” he told local reporters, “but skilled professionals will always be needed.”
A pivotal moment for Germany’s auto heartland
Economists warn that the transformation towards electric vehicles, digital systems and sustainability will continue to reshape Germany’s industrial core. The challenge for companies like Bosch and ZF is to balance cost-cutting with innovation, and to preserve their skilled workforce while navigating volatile global markets.
What began as a chip shortage has turned into a wake-up call: Germany’s automotive supply chain — once a symbol of reliability — must now reinvent itself to survive.
