Saarland's Automotive Industry Faces Challenges and Opportunities Amid EU Commission's EV Plans
EU's proposal for company vehicle fleets under scrutiny by Toscani: "Saarland should not serve as a guinea pig"
The automotive industry in Saarland, centred around Saarbrücken, is facing significant challenges and opportunities due to the current economic environment and the EU Commission's electric vehicle (EV) plans.
The industry is under severe strain, as exemplified by major job cuts and restructuring at ZF Friedrichshafen, one of Germany's largest auto suppliers. Since early 2024, tens of thousands of jobs have been lost nationwide due to declining demand, high restructuring costs, and the shift to electric motors. The industry is dealing with a 30% drop in global production of cars and light commercial vehicles since 2018, impacting suppliers like ZF, Bosch, and Continental. This decline is compounded by the financial stress from their transition to EV components, which are currently generating less revenue and higher costs than combustion engine parts.
The crisis includes plans for plant closures or sales of underperforming divisions, with a focus on profitability thresholds not being met, which could mean further job losses or site shutdowns.
However, the EU Commission, led by Ursula von der Leyen, has set ambitious EV policies aiming to drastically reduce emissions by promoting electric mobility. These plans pressure suppliers to shift rapidly from conventional internal combustion engine components to EV and related high-tech parts. Suppliers with low profit margins or older, specialized plants might be at risk if they cannot adapt quickly.
Despite these challenges, Saarland-based companies like SurFunction in Saarbrücken are innovating in green tech and surface modification technologies, which could align with the trends towards electric and sustainable vehicle manufacturing. This suggests some firms may find growth opportunities in supplying advanced materials and technologies for EVs.
Fraunhofer IZFP in Saarbrücken is a leader in applied research, including safety and sustainability technologies relevant to the automotive industry's future. Recent orders for high-tech additive manufacturing equipment suggest active investment in cutting-edge manufacturing processes vital for EV production chains and lightweight components. This R&D focus may help Saarland's automotive cluster adapt to the technological demands of electrification, potentially creating new high-tech jobs and industrial niches.
Stephan Toscani, the chairman of the CDU state parliament faction in Saarbrücken, has declared that the EU Commission's plan must be stopped immediately. Toscani warns against ideologically motivated bans that pose challenges to key industrial sectors, such as the automotive industry in Saarland. He advocates for a "realistic, technology-open approach" in the EU Commission's plans and believes that the EU Commission's plans may not significantly contribute to climate protection. Toscani also expressed his concern about Saarland becoming a testing ground for centralist EU requirements.
Toscani's stance emphasizes the importance of maintaining a technology-open approach to ensure the competitiveness of the German automotive industry. He appeals to Berlin to enforce the technology openness stance at the European level and reiterates his call for the principle of technology openness to apply at the EU level. Toscani states that Germany must take a leading role in this matter to avoid driving the German automotive industry out of Europe. He also warned that the EU Commission's plan would be another blow to the economic location of Saarland and would endanger further jobs along the automotive value chain.
In conclusion, Saarland’s automotive industry stands at a crossroads: while traditional suppliers face austerity and job risks linked to the broader industry crisis and EU EV mandates, emerging tech firms and R&D centers in Saarbrücken offer pathways for adaptation and future growth in the evolving electric mobility ecosystem. However, the industry's future is heavily dependent on policymakers adopting a technology-open approach to ensure the competitiveness of the German automotive industry and the economic well-being of regions like Saarland.
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