Tesla to leave Germany

Soon.

Union tries to seize control of works council at Tesla’s German factory – Lawsuits and slander claims fly in IG Metall’s battle with Elon Musk over employment rights and conditions.

Europe’s largest trade union is trying to gain control of the works council at Elon Musk’s Tesla gigafactory near Berlin, in an industrial relations showdown marked by lawsuits and mutual accusations of slander.

The works council, an elected body of employees that negotiates everything from working hours to pay deals with a company’s management, is considered an entrenched aspect of the German corporate world, particularly in the car industry.

But it was a bone of contention at the Tesla plant in Grünheide, about 20 miles (30km) south-east of Berlin, even before the gates opened almost four years ago.

Rebound?

More like a dead cat bounce.

German Economy Grows by 0.3% in Q4, Stats Office Says – The German ​economy ‌grew ‌by ⁠0.3% in ⁠the fourth quarter ​of ​2025 compared ⁠with ⁠the ⁠previous quarter, the ​statistics ​office ⁠said ⁠on Wednesday, confirming its ⁠preliminary reading.

Meanwhile… German auto exports to China plunged by a third in 2025, economic institute says.

German of the day: Sich ins Knie schießen

That means to shoot yourself in the foot, only in German it’s the knee.

With the highest energy prices in Europe (in the world?), what choice does German industry have but move? Go Greens.

German auto industry in ‘crisis’ as investments, jobs move abroad, lobby says – Germany’s standing as an automotive industrial hub risks being hollowed out as investments and jobs drift abroad, an industry association warned on Tuesday, calling on Berlin and Brussels to focus on measures that spur growth.

“Germany is experiencing a huge crisis as a business location,” VDA President Hildegard Mueller said.

A VDA survey of small- and medium-sized German enterprises across the auto supply chain, presented by Mueller on Tuesday, showed that 72% of companies plan to dial back their investments in Germany, either by moving them abroad (28%), postponing them (25%) or cancelling them completely (19%).

The next 20,000 jobs gone

Could it be our ridiculously high energy costs? Nah.

Germany’s industrial engine sputters as Bosch axes 20,000 jobs – Rising unemployment rate piles pressure on Chancellor Friedrich Merz’s government.

German industrial giant Bosch on Friday confirmed plans to cut 20,000 jobs after profits nearly halved last year, underlining the mounting strain on Germany’s once-dominant manufacturing sector and increasing the pressure on politicians in Berlin to find a solution.

Official data released Friday also showed Germany’s unemployment rate, unadjusted for seasonal factors, rising to 6.6 percent — the highest level in twelve years. The number of unemployed people surpassed three million in January.

There’s “critical”

Then there’s “very critical.”

Then there’s Germany critical.

Merz issues business SOS in letter to allies – Chancellor Merz has told coalition politicians the situation in several key German businesses is “very critical.” He said the government must prioritize improving areas like energy and labor costs in 2026.

German of the day: Stellenabbau

That means job cuts.

German business groups expect job cuts in 2026 as economic crisis drags on – A majority of German business associations expect job cuts in 2026 as the country’s economic crisis persists, with industry hit hardest by global protectionism and weak exports, a survey by the German Economic Institute IW showed on Monday.

Of 46 business associations surveyed, 22 anticipate workforce reductions next year. Only nine expect to increase hiring and 15 foresee stable employment levels.

German of the day: Insolvenz

That means bankruptcy.

German business bankruptcies hit decade high amid downturn – Business bankruptcies have climbed to an 11-year high, with small firms hardest hit by Germany’s anemic growth. Economists warn of job losses but see tentative signs that the insolvency wave may be leveling off.

Don’t worry, in other words. Once everybody has gone bankrupt the bankruptcies will stop.

There’s always a first time

Then a second, then a third…

Volkswagen shutters a German plant for first time ever as Trump tariffs squeeze car giant – Volkswagen is ending vehicle production at its Dresden factory — the first time in the automaker’s 88-year history that it has closed a plant in its home country — as weakening demand and punishing US tariffs squeeze the German car giant.

The last vehicle rolled off the line Tuesday at the Dresden site, known as the “Transparent Factory” because of its glass-walled design, capping 24 years of production that began in 2001.

Because Germans are making cars that nobody wants to buy…

And voluntarily killing their number one industry in the process.

That’s why.

Why Germany’s auto capitals face financial crisis – The crisis in Germany’s revered car industry is taking a toll on its wealthiest regions — and hitting the pocketbooks of residents.