Automotive suppliers in Saxony-anhalt⁢ are navigating a critical period ⁣of repositioning as the German automotive industry undergoes a notable transformation. The shift towards electric vehicles is creating both challenges and opportunities for businesses in the region.

Pressure to Diversify Beyond Combustion Engines

Marco Langhof, President of the Saxony-Anhalt employers and business associations, ⁤emphasized the urgency of the situation, stating⁢ that relying on the continued production of combustion⁢ engine components is no longer a viable strategy. Suppliers must actively integrate into emerging value chains, particularly those focused on battery technologies, advanced control systems, and sensor development. Langhof also‍ underscored the necessity of robust political support to facilitate this transition.

Production Lags and Potential Job losses

Current production figures across the german‍ automotive sector remain below pre-pandemic ⁤levels ⁢recorded in 2019. despite⁢ the ⁤growth of the electric vehicle market, it has not yet fully compensated for the decline in demand for combustion engine vehicles.⁤ The German Association of the Automotive Industry projects a potential loss of up to 190,000 jobs nationwide by 2035 as an inevitable result of this shift. The Ministry of Economics in Magdeburg identifies suppliers specializing in combustion engine ⁣parts as being particularly vulnerable to ‍these pressures.

Identifying New ⁣Avenues ⁢for Growth

Despite the challenges,‍ opportunities exist for Saxony-Anhalt’s automotive‍ sector. Jens Lücke, chairman of the‍ Sahreg automotive network, ⁢points to potential diversification into related industries such⁣ as mining, shipbuilding, and defense. This⁣ suggests a strategy ‍of leveraging existing expertise‍ and infrastructure to serve new markets and ⁤mitigate the impact of the automotive⁣ transition.