Tens of thousands of workers across Germany's auto industry took to the streets on Monday, protesting over job security and the future of manufacturing as carmakers face rising costs and growing competition from Asian rivals.
Volkswagen shares fell 0.6 per cent by 0816 GMT, while Porsche declined 2.3%, extending Friday's losses. Shares in Porsche SE, Volkswagen's largest shareholder, also fell 2.9%.
Led by the IG Metall union, workers from Volkswagen, BMW, Mercedes-Benz, Porsche, Audi and parts supplier Bosch gathered at more than 280 locations across Germany. The protests came less than three days after Volkswagen, Europe's largest automaker, issued a surprise profit warning highlighting the difficulties facing the industry, Reuters reported.
Germany's auto industry is facing mounting pressure from job losses, possible production relocations and plant closures. The crisis has also become a political issue, with the challenges facing the sector reflected in the results of two state elections held on Sunday.
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“Due to lethargy and disastrous misjudgements, most managers have failed to keep pace with developments in e-mobility, digitalisation and battery technology, thereby causing the German automotive and supplier industries to fall behind,” IG Metall trade unionist Horst Ott said.
Volkswagen's shares have fallen sharply in recent months, with the stock hitting its lowest level since July 2010. The decline has highlighted the pressure on the automaker as it struggles with excess capacity in Europe, US tariffs and weaker profits in China.
European carmakers are also facing tougher competition from Asian rivals, both in overseas markets and at home. For Volkswagen, the pressure comes as demand shifts towards electric vehicles, which are generally less profitable for the company, while the industry remains heavily dependent on combustion-engine vehicles.
On Friday, Volkswagen cut its 2026 profit-margin forecast to a maximum of 1%, citing weak demand in China and higher provisions related to retirements. The company also lowered its expectations for its Porsche sports car division.
The profit warning came as Germany's auto industry grapples with the costly transition to electric vehicles and increasing competition from Asian manufacturers.
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