Germany's car industry is facing major changes, and the pressure is reaching beyond vehicle production and sales. As manufacturers look for ways to reduce expenses and remain competitive, one long-established feature of the country's automotive sector is being questioned: the 35-hour working week.

Some employers want workers to put in more hours without receiving additional pay, creating a difficult discussion about business costs, job security, and working conditions.

Why the 35-Hour Week Is Under Pressure

The 35-hour working week has been an established arrangement in much of Germany's automotive industry. It forms part of the working conditions that helped shape the country's manufacturing sector over many years. However, the business environment has become more challenging. German carmakers are dealing with high production costs, changing customer demand, and increased competition from international manufacturers.

Against this background, some company representatives have argued that employees should work longer hours while keeping their existing pay. Their position is that increasing working time could lower the effective cost of each working hour and make domestic factories more competitive.

For employees, the proposal raises a different concern. Working additional hours without higher wages would change an important part of their existing conditions. It also brings questions about whether longer schedules would genuinely improve the industry's position.

A Sector Facing Employment Challenges

The discussion about working hours is closely connected to employment trends in Germany's automotive industry. Figures cited in the reporting show that the sector employed around 830,000 people in 2018. The number has since fallen below 700,000, with a projection suggesting it could reach approximately 500,000 by 2030.

The effects extend beyond vehicle factories. Automotive production depends on a wide network of suppliers and related businesses, so changes in manufacturing can influence employment across the wider sector. For workers, this makes the debate about working hours part of a larger concern about the future of their jobs. For employers, it is connected to the need to control expenses while maintaining production capabilities.

How Germany Compares With Other Markets

Labor expenses are one reason German manufacturers are reviewing their cost structures. Figures from consulting firm Oliver Wyman cited in the report put average labor costs per vehicle in Germany at $3,307, or approximately €2,882. The comparable figures were substantially lower in Japan, at $769 per vehicle, and China, at $597. This gap helps explain why production costs are an important part of discussions about the competitiveness of German factories.

However, labor expenses are only one element of vehicle manufacturing. Companies also need to consider development costs, production efficiency, technology, and the appeal of their vehicles to customers. A lower labor cost does not automatically guarantee a stronger business. Manufacturers must still produce vehicles that meet market expectations while managing the expenses involved in developing and building them.

Longer Working Hours Are Not a Complete Solution

Increasing weekly working hours could help companies spread labor expenses across more working time. However, it would not directly resolve the technological and business challenges facing the industry. The shift towards electric vehicles is one example. Manufacturers need to develop competitive products and adjust their production processes as customer expectations and available technologies change.

Automotive expert Stefan Bratzel has cautioned that adding five working hours per week would not, by itself, be enough to win the technological competition. His assessment points to a wider issue: improving competitiveness requires more than simply asking employees to spend longer at work. Companies also need to consider whether additional hours would be useful in their factories.

Balancing Business Needs and Employee Conditions

The challenge for German manufacturers is finding a way to improve their operations without placing the entire burden on employees. Companies need to manage costs and adapt to new technologies, while workers want reliable employment and fair working conditions.

A lasting response will require attention to several areas, including production efficiency, investment, vehicle development, and workforce planning. Reviewing working hours may form part of that discussion, but it cannot replace improvements in the way vehicles are designed and manufactured.

Germany's 35-hour workweek debate is part of a much broader challenge for its automotive industry. Longer working hours may be considered as a way to reduce labor expenses, but the sector also needs to address technological change, production efficiency, and international competition.

The future of the working week will depend on how employers and employees respond to these pressures. Ultimately, Germany's carmakers need a sustainable approach that strengthens their businesses while recognising the importance of the people who keep the industry operating.