The European automotive industry is currently undergoing a profound geographical and technological transformation. While Germany, traditionally a major hub for the industry, is grappling with employment risks and an ongoing structural crisis, Hungarian production sites are experiencing an unprecedented boom thanks to ambitious expansions in the field of electric mobility.

According to current calculations by the German Association of the Automotive Industry (VDA), the German automotive sector faces the loss of 225,000 jobs by 2035—35,000 more than previously forecast, Tagesschau reports.

Between 2019 and 2025, job losses reached 100,000.

VDA President Hildegard Müller warns of a “severe and lasting crisis for the industry” caused by high energy prices, heavy tax burdens, high wages, and excessive bureaucracy. The supplier industry in particular is on the brink of collapse, as the shift to electric drives requires significantly fewer employees.

This dire situation is also reflected in corporate balance sheets. The holding company Porsche SE reported a loss of 923 million euros for the first quarter of 2026, driven by billions in write-downs on its stake in the crisis-stricken Volkswagen Group, writes Focus online. Both VW and the Porsche brand are struggling with the harsh market environment and must implement radical cost-cutting programs to save their business models.

While the German automotive industry is shrinking, completely opposite processes are unfolding in Hungary.

The Mercedes-Benz plant in Kecskemét is currently undergoing one of the largest expansions in its history. The company is constructing new plant sections to begin production of the new GLB model shortly. In the long term, the fully electric C-Class is also set to roll off the assembly line in Kecskemét.

This capacity expansion is accompanied by a significant need for workers. As Világgazdaság reports, the plant has been seeking hundreds of new employees for various departments since last fall.

To support recruitment, Mercedes-Benz Manufacturing Hungary Kft. launched a regional career roadshow from mid-May through the end of June.

Company representatives are visiting nine specific towns in three counties to inform interested candidates directly on-site about job profiles, the selection process, and the company’s benefits. The plant is thus playing an increasingly central role in Mercedes-Benz’s global electric vehicle strategy.

Meanwhile, BMW is also making headlines in Debrecen.

The Hungarian plant implemented the introduction of a second shift for the production of the new, fully electric iX3 crossover earlier than planned, as early as March.

The reason is unexpectedly high demand. Since the vehicle’s debut last September, the iX3 has already accounted for a third of all orders in Europe—even though only the premium 50 xDrive version is currently available. The plant is rapidly approaching its full capacity of 150,000 vehicles per year and will also serve the U.S. market starting this summer.

Structural change thus creates winners and losers. While bureaucratic burdens and high costs are crushing the industrial base in Germany, Hungarian sites are reaping the benefits of the transformation in the automotive industry through flexibility and targeted investments.

Via Tagesschau.de, Világgazdaság; Featured image: MTI/Hegedüs Róbert