Webasto to Cut 650 German Jobs Amid Rising Debt and Slow Electric Vehicle Adoption
Battling the Storm: Webasto Announces Deep Cuts Amid Industry Upheaval
By the end of 2025, German automotive supplier Webasto will shed another 650 jobs domestically, as a global restructuring escalates amid financial turmoil and seismic shifts in the automotive sector.
In the heart of Germany’s automotive industrial belt, Webasto, a leading supplier known for its roof systems and electric mobility components, is bracing itself against relentless financial headwinds. The company announced plans this week to eliminate approximately 650 jobs in Germany by the end of 2025—a painful yet necessary decision to ensure long-term viability amid severe market pressures.
The cuts mark another grim milestone in a restructuring process that began in late 2024, underscoring the severity of financial stress that has gripped the German auto supplier industry. With debts nearing €1 billion and an urgent requirement for an additional €200 million in equity, Webasto’s restructuring has turned into a fight for survival rather than simply a recalibration of strategy.
A Company at Crossroads
Webasto’s struggle is far from isolated. Already, the company closed two factories in China and shed 1,600 global positions in 2023. These aggressive steps reflect broader challenges within the automotive industry, including unexpectedly sluggish adoption of electric vehicles, fierce competition from lower-cost Chinese manufacturers, and persistent economic pressures such as inflation and supply chain disruptions.
Global Electric Vehicle Sales Growth vs. Projections
| Category | 2022 | 2023 | 2024 (Actual/Projected) | 2025 (Projected) | 2030 (Projected) | Source(s) |
|---|---|---|---|---|---|---|
| Global EV Sales (Units) | >10 million | ~14 million | ~17 million (IEA proj.) / 17.1 million (actual - Rho Motion) / 10.8 million (BEV only - EV Universe) | ~20 million (+18% YoY - Rho Motion) | Nearly 250 million stock (IEA STEPS) / 38 million annual sales (Incorrys) | IEA, Rho Motion, EV Universe, Incorrys |
| Global EV Sales Growth YoY | ~60% (vs 2021) | ~35% | ~25% (IEA proj.) / 25% actual growth (Rho Motion) / 5% BEV-only growth (EV Universe) | ~18% growth projected | Average 23% per year (2024-2030, IEA NZE Scenario) | IEA, Rho Motion, EV Universe |
| Global EV Market Share | ~14% | ~18% | >20% projected (IEA) / ~14.5% BEV-only share (EV Universe) | >22% projected | ~45% (BNEF ETS) / ~50% by 2035 (IEA STEPS) / ~65% by 2030 (IEA NZE Scenario) | IEA, BNEF, EV Universe |
| China EV Market Share | - | ~60% of global sales | Projected ~45% of domestic sales | Projected ~12.9 million units | Dominant market share globally | IEA, Rho Motion |
| Europe EV Market Share | ~20% of domestic sales | ~25% of global sales | Projected ~25% of domestic sales | Projected >3.5 million units | Continued growth with stricter emission targets | IEA, Rho Motion |
| USA EV Market Share | - | ~10% of global sales | Projected >11% (~1 in 9 cars sold domestically - IEA) | Projected >2.1 million units | Projected ~29.5% of domestic sales by 2030 | IEA, EVAdoption, Atlas EV Hub |
"What we're witnessing at Webasto is a microcosm of the existential crisis gripping Germany’s entire automotive supplier base," explained an automotive industry analyst familiar with the restructuring efforts. "This isn't simply a mismanagement issue; it's structural and systemic."
In January 2025, facing mounting challenges, Webasto appointed Johann Stohner, a veteran restructuring specialist from Alvarez & Marsal, as Chief Restructuring Officer. Shortly thereafter, the company announced Jörg Buchheim would assume the CEO role on March 17, succeeding Dr. Holger Engelmann. The leadership overhaul signals not just a shift in personnel, but a wholesale recalibration of strategic focus.
A Chief Restructuring Officer (CRO) is a specialized executive, essentially a turnaround management specialist, brought in when a company faces severe financial distress. Their core function is to lead the company through a restructuring process to stabilize operations and improve financial health.
The Cost of Transformation
At stake for Webasto is the ability to pivot effectively toward electric mobility and core competencies such as roof systems. But executing this pivot has proven profoundly costly.
"Their financial position remains extremely fragile," noted one financial analyst tracking German industrial restructuring. "The stabilization agreement with creditors provides only temporary relief. Without further equity injections, the pressure on operations will mount rapidly."
Industry-Wide Pain Signals Broader Risks
Webasto’s turmoil mirrors broader difficulties within Germany's supplier network, where stalwarts such as Continental and Bosch have also been compelled into substantial cutbacks. The transition away from traditional combustion engines toward electric vehicles—a shift fraught with uneven demand and high capital costs—is inflicting widespread disruption.
Recent Job Cuts Announced by Major German Automotive Suppliers
| Company | Announced Job Cuts / Details | Timeframe / Context |
|---|---|---|
| Bosch | Up to 12,000 jobs globally by 2032, including 7,000 in Germany. Recent reports confirm 5,500 cuts globally in the Mobility division announced in early 2025. Plans also include reduced working hours for 10,000 employees in Germany. | Cuts primarily target the auto parts division due to challenges such as EV transition, competition from China, high costs, and weakening demand. Specific sites affected include Gerlingen (3,500 by 2027), Hildesheim (750 by 2032), Schwaebisch Gmund (up to 1,300 by 2030). |
| Continental AG | Over 10,000 jobs globally. Recent announcements include 3,000 R&D job cuts (1,450 in Germany) by end of 2026. Earlier plans targeted over 7,150 jobs globally (5,400 admin and 1,750 R&D). Elektrobit subsidiary cutting 480 jobs (330 in Germany). | Cuts focus on restructuring the automotive supplier division to achieve €400M cost savings and prepare for stock market launch. German sites affected include Frankfurt (220), Babenhausen (220), Nuremberg (140 jobs), Wetzlar (200), Schwalbach (10), Ingolstadt (20), Regensburg (40). |
| ZF Friedrichshafen | Up to 14,000 jobs in Germany by 2028 as part of a €6 billion global savings program. Reports from March 2025 indicate that 4,000 jobs were cut in Germany in 2024 through attrition/retirement. Specific plans include Saarbrücken plant (1,800 jobs by 2025) and Brandenburg plant (850 jobs by 2028). | Restructuring driven by EV transition and cost pressures. The Saarbrücken plant produces automatic transmissions for ICE vehicles. |
| Schaeffler | Announced plans to cut 4,700 jobs across Europe, including 2,800 at German sites. Downsizing affects operations at ten locations in Germany and five other European sites. | Restructuring driven by declining demand and EV-related challenges. |
The transition to electric vehicles presents significant hurdles for auto suppliers, distinct from the challenges associated with traditional ICE components. A primary difficulty involves the substantial capital investment needed to develop and manufacture new EV-specific parts.
"These companies are caught between a declining ICE market and the immense financial burden of transitioning toward electrification," one automotive consultant observed. "Margins are thin, capital investment requirements are enormous, and competition, especially from China, is intense."
The scale of job losses and operational closures across the industry are not just numbers—they represent potential erosion of Germany’s industrial competitiveness and threaten long-term social stability in affected regions. Labor representatives have already expressed deep concern over the permanent loss of skilled positions, underscoring the broader socioeconomic stakes.
Investment Outlook: Navigating Risks and Opportunities
From an investor's perspective, Webasto and the broader German automotive supplier sector represent a highly complex and volatile market environment, currently defined by substantial restructuring and narrow profit margins. Despite near-term risks, several key scenarios could shape potential investment outcomes:
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Consolidation and M&A Activity: Analysts predict increased merger and acquisition activity as financially weaker suppliers become acquisition targets. Companies that successfully consolidate may benefit from improved economies of scale and pricing power.
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Technological Transformation: Firms that effectively pivot towards advanced automation, digitalization, and electric mobility technologies could significantly improve profitability and market leadership positions over time.
Industry 4.0 (eurometal.net) -
Policy and Government Intervention: Policymakers and governments may intervene through incentives, subsidies, or favorable financing conditions. Such support could alleviate some immediate financial burdens and help stabilize margins.
"For contrarian investors with a high-risk tolerance," noted an investment analyst, "the German automotive supplier sector offers opportunities. The key is identifying companies genuinely capable of technological adaptation and operational efficiency amid this turmoil."
The Road Ahead: A High-Stakes Gamble
For Webasto and its peers, the immediate future involves carefully managing operational costs while accelerating strategic pivot points. The effectiveness of the ongoing restructuring—particularly whether additional equity can be secured—will critically determine the company's viability.
Industry observers emphasize that policy support, through incentives or strategic investments, could significantly mitigate the adverse impacts. Yet uncertainty persists, especially as global competition and macroeconomic volatility continue unabated.
In the end, Webasto's deep cuts are symptomatic of an industry facing profound existential questions. The stakes are enormous—not only for Webasto and its workers but for Germany’s broader industrial heritage, which stands at a historic crossroads. The coming months and years will reveal whether Webasto—and indeed Germany’s entire automotive supply chain—can weather this storm and emerge fundamentally reshaped and strategically strengthened.