BERLIN (dpa-AFX) - Most cars are produced in West Germany

- yet numerous jobs in the automotive sector also depend on the industry in the eastern federal states.

Electric vehicles, in particular, have a strong foothold here. However, conditions at these locations could be improved, as became evident during the so-called Automotive Industry Dialogue, where representatives from industry, unions, the federal government, and the states met at the invitation of the federal government's Commissioner for Eastern Germany, Elisabeth Kaiser (SPD).

Financing Problems for Suppliers

One problem: According to participants, suppliers are having difficulty obtaining loans from banks. This is one reason why he wanted to send a clear signal with the purchase premium for electric vehicles, indicating that, in addition to pure electric cars, vehicles with range extenders and so-called plug-in hybrids should also be supported, said Federal Environment Minister Carsten Schneider (SPD).

Plug-in hybrids are cars that can run on both electricity and fuel. Range extenders are small combustion engines that increase the range of electric vehicles.

Recycling at VW in Zwickau

The recruitment of skilled workers is also necessary, Kaiser said, especially in view of a shrinking population, particularly in eastern Germany. In addition to training young people, immigration is also needed for this purpose.

Schneider praised VW's decision to focus on recycling at its Zwickau plant. This is very labor-intensive and helps secure the location. Recovering raw materials from old cars is important, including making the industry less dependent on foreign suppliers. IG Metall chairwoman Christiane Benner agreed, noting that batteries in particular can be recycled.

High Proportion of Electric Vehicles in East German Production

Andreas Rade, Managing Director of the German Association of the Automotive Industry (VDA), commented on the future of East German automotive sites: "We have invested billions." The focus now is on accelerating the ramp-up of electromobility, through the purchase premium and more affordable charging electricity. "And secondly, we must remain competitive in the global market." Prior to the meeting, Benner had called for clear, binding commitments to maintain these locations, a demand echoed by Kaiser.

In total, 60 percent of all passenger cars produced in East Germany last year were electric vehicles. This is based on calculations by the Leipzig-based Automotive Cluster East Germany (ACOD) initiative, using figures from the German Association of the Automotive Industry (VDA).

More Cars Produced in West Germany

For comparison: Electric vehicles account for 35.1 percent of production in West Germany, and 40.2 percent nationwide. In absolute numbers, however, more electric cars are produced in the West, as are more vehicles overall. The main production hubs are Bavaria, Lower Saxony, and Baden-Württemberg.

The high share of electric vehicles in East German plants is primarily due to the dedicated electric vehicle sites operated by Tesla and VW. The Wolfsburg-based automaker converted its Zwickau plant into the first dedicated electric vehicle factory by 2020, where Audi and Cupra models are also built.

Only Electric Vehicles Produced in Brandenburg

In 2022, U.S. electric vehicle pioneer Tesla opened its only European factory in Grünheide, near Berlin. Until then, there had been no car factories in the state. Brandenburg thus became the first federal state where only electric vehicles are produced.

However, the largest production volume in the East is in Saxony. In addition to VW Zwickau, BMW and Porsche also have plants in Leipzig, where both combustion-engine vehicles and electric cars are built. In fact, BMW Leipzig was the first German factory to build electric vehicles, starting with the BMW i3 in 2013. However, demand for the small original EV remained modest.

The Automotive Industry as an Economic Factor

Jens Katzek, Managing Director of ACOD, told dpa that well over 200,000 people work in the automotive industry and its suppliers in East Germany. This means that, proportionally, more industrial jobs in eastern Germany depend on the automotive sector than in the West. However, there is also particularly high pressure to ensure the transition to electromobility is successful./hrz/DP/men