For decades, Ingolstadt enjoyed prosperity thanks to the success of carmaker Audi. But those days are over. The Bavarian city now faces a financial crisis unprecedented in its history.
While officials had initially expected to save around €30 million per year, new calculations show that Ingolstadt may need to cut more than twice that amount.
According to Mayor Michael Kern (CSU), the city will not be able to present a balanced budget in 2026 — a first for Ingolstadt.
“The situation is more dramatic than ever before,” he warned.
Collapse in business tax revenues
The crisis is rooted in the downturn of Germany’s automotive industry.
At its peak in 2017, Ingolstadt collected €453 million in business tax revenue, largely from Audi. For 2026, the city expects only €70 million.
With no recovery in sight, officials are bracing for long-term challenges.
At the same time, personnel and operating expenses are rising.
Ingolstadt is not alone: a survey by the German Association of Cities found that over one third of major German cities can no longer balance their budgets, while nearly half rely on reserves to cover deficits.
Savings target doubles
Previously, Ingolstadt planned to cut €30 million annually from 2026 to 2028 through measures such as socially responsible staff reductions and reduced subsidies for associations and cultural institutions.
The latest figures, however, suggest the city must save between €60 and €80 million each year. As a result, all major projects are now under review.
Schools, theater and museum projects under pressure
Several schools require renovation or expansion, but construction schedules have already been postponed.
Plans for the city’s historic theater — a 1960s landmark that urgently needs modernization before its operating license expires in 2027 — are now uncertain, despite more than a decade of preparation.
Another project at risk is the new Museum for Concrete Art and Design (MKKD), which is currently under construction.
“We don’t want unfinished building sites,” said finance officer Franz Fleckinger, but funding constraints make delays increasingly likely.
Cuts to voluntary services
Even voluntary services, which have already faced reductions, may see further cuts. These include museums, theaters, libraries, sports clubs and music schools.
The Ingolstadt Chamber Philharmonic reported earlier this year that severe budget cuts had forced them to reduce concerts.
Theater director Oliver Brunner described a new mindset: “Every decision comes with the question: can I afford this at all?”
Sports clubs have also seen reduced subsidies for energy and water costs, while the general funding allowance for associations has been lowered.
What citizens can expect
The city council will make final decisions in the coming months. Residents are likely to face higher fees, higher local taxes and fewer municipal services.
Job cuts at city hall are not planned, but Ingolstadt’s era as one of Germany’s wealthiest municipalities has clearly come to an end.
