At a factory in East Germany, a car part is produced every second, with millions of pieces being cut and pressed for the country’s automotive industry.
The HENNgineered plant is located on the outskirts of Zwickau, a city known for its strong automotive presence. The United States is a crucial trading partner for Germany when it comes to vehicles.
In 2024, automotive exports to the US totaled €36.8bn (£30.7bn), as reported by the German Automobile Association.
Therefore, the decision by Donald Trump to impose 25% tariffs on all passenger cars and light commercial vehicles imported into the US poses a significant challenge for manufacturers and suppliers.
This factory makes a car part every second, cutting and pressing millions of pieces
There are fears about future jobs after Donald Trump announced the latest tariffs on car imports
«Such tariffs would be very challenging. They could lead companies to consider moving their production to the US, potentially resulting in job losses here in Germany,» explains site manager Matthias Wissel.
Volkswagen is currently the largest local employer, providing approximately 10,000 jobs.
Read more: Trump’s car tariffs condemned
However, the automotive industry runs deep in the city’s history, with the first vehicle produced here nearly 120 years ago.
The city museum showcases a range of cars from different eras, from shiny racing cars to colorful Trabants.
One room in the museum is dedicated to the long history of car manufacturing in Zwickau.
The August Horch Museum in Zwickau showcases the city’s long history of car making
![SN screengrab from Robbins VT about Trump tariffs. GVs from german car parts manufacturer HENNgineered in Zwickau, and the August Horch Museum. The city developed cars from the German empire right through to the current modern republic, explains Thomas Stebich, head of August Horch Museum.
While the immaculate car displays celebrate the city’s pioneering past, tariffs are making many feel uncertain about the future.
«If nobody in the US buys a German car or less people buy German cars, it will have an impact, of course, because we need to build high numbers of cars here [for jobs],» Stebich says.
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If you want to understand how key the auto industry is to German identity, think mining to the UK in its heyday.
Around 700,000 people are employed in the industry, which generates more than 540 billion euros in sales a year.
But tariffs are not the first storm German car manufacturers have had to weather.
High energy and labour costs, competition from China and weaker domestic demand due to the ailing economy mean the German car industry has been cutting jobs.
Audi recently announced it will cut 7,500 administration jobs by 2029.
By 2030, VW will lose 35,000 roles.
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<p>They’re not the only ones, but Trump’s tariffs news comes as a fresh blow to workers.</p>
<p>A representative on the VW works council in Zwickau cancelled our interview due to crisis talks.</p>
<p>All the workers we met seemed pessimistic and deeply worried for the plant and the city’s future.</p>
<p>Their concern is shared by Aliriza Oernek, who owns four restaurants in Zwickau.</p>
<p>He says in recent years they’ve seen many of their young people leave the area to seek jobs elsewhere. He fears fresh pain from tariffs will hurt the whole community.</p>
<p>«Volkswagen is the biggest employer in Zwickau, the main source of money for people who live here. If they were to disappear, then people won’t stay in the town anymore,» he says.</p>
<p>Like its counterparts, Volkswagen is closely watching developments around tariffs and assessing how they could impact the supply chain and production.</p>
<p>All eyes are currently on the European Union to see how it will retaliate.</p>
<p>In a statement, a spokesperson for VW Group said they «share the assessment of most experts that US tariffs and any counter-tariffs will have negative consequences for growth and prosperity in the US and other economic areas… and continue to advocate for constructive talks».</p>
<p>So, while car makers brace for impact, Germany’s vowed it will «not take this lying down», calling for a «firm response» from the EU as it tries to protect its automakers from this new American attack.</p>
<p>At one factory in East Germany, they’re pumping out a car part every second, cutting and pressing millions of pieces destined for the country’s mega motor industry.<br />
The HENNgineered plant sits on the edge of Zwickau, a city where the car is king. Germany’s most important trading partner in vehicles is the United States. In 2024, automotive exports to the US totaled €36.8bn (£30.7bn), as reported by the German Automobile Association. Therefore, the decision by Donald Trump to impose 25% tariffs on imported passenger cars and light commercial vehicles poses a significant challenge for manufacturers and suppliers. Matthias Wissel, site manager, expresses concerns that such tariffs could lead companies to relocate production to the US, resulting in potential job losses in Germany. Despite this, Volkswagen remains a key local employer, supporting around 10,000 jobs. Car manufacturing has a long history in the city, with the first vehicle produced around 120 years ago. The city museum showcases this history with displays of cars through the ages, including shiny silver racing cars and brightly colored Trabants. The history of car manufacturing in the city of Zwickau, Germany dates back to the German empire and continues through the present day republic. Thomas Stebich, head of the August Horch Museum, highlights the city’s pioneering past in the automotive industry. However, the future is uncertain due to the impact of tariffs on German auto manufacturers.</p>
<p>The imposition of tariffs on German cars, particularly in the US market, is causing concern among industry experts. Thomas Stebich expresses his worries about the potential consequences of reduced sales on the local economy, as high production numbers are essential for job stability in the region.</p>
<p>The automotive industry plays a significant role in German identity, similar to how mining once defined the UK. With around 700,000 people employed in the sector and over 540 billion euros in annual sales, the industry is a vital part of the country’s economy. Despite its importance, German car manufacturers have been facing challenges such as high energy and labor costs, competition from China, and weakening domestic demand.</p>
<p>In response to these challenges, companies like Audi and VW have announced job cuts in recent years. Audi plans to eliminate 7,500 administration positions by 2029, while VW is expected to lose 35,000 roles by 2030. The implementation of tariffs by the US government adds to the industry’s woes, creating further uncertainty for workers in Zwickau and beyond.</p>
<p>Workers in Zwickau are particularly concerned about the future of Volkswagen, the city’s largest employer. Aliriza Oernek, a local business owner, fears that tariffs could lead to job losses and a decline in the local economy. He notes that many young people have already left the area in search of better opportunities, and further economic challenges could worsen the situation.</p>
<p>Volkswagen and other car manufacturers are closely monitoring developments related to tariffs and their potential impact on the supply chain and production. The European Union is expected to respond to the US tariffs, and German automakers are calling for a firm response to protect their interests.</p>
<p>In a statement, a spokesperson for VW Group emphasized the negative consequences of tariffs on growth and prosperity, advocating for constructive dialogue to address the issue. Germany is determined to defend its automakers and push for a strong response from the EU to counter the American trade policies.</p>
<p>As the automotive industry braces for the impact of tariffs, the future remains uncertain for German car manufacturers and the communities that rely on them for employment and economic stability. The ongoing trade tensions highlight the challenges facing the industry and the need for strategic responses to safeguard the future of German automotive manufacturing. At one factory in East Germany, they’re pumping out a car part every second, cutting and pressing millions of pieces destined for the country’s mega motor industry. The HENNgineered plant sits on the edge of Zwickau, a city where the car is king. And when it comes to vehicles, America is Germany’s most important trading partner. In 2024, automotive exports to the US reached a total value of €36.8bn (£30.7bn), according to the German Automobile Association. So, Donald Trump’s decision to introduce 25% tariffs on all passenger cars and light commercial vehicles imported into the US is a big problem for manufacturers and suppliers alike. «Such tariffs would be very hard. It could make companies decide to move to the US to produce there, which might also mean jobs are lost here in Germany,» explains site manager Matthias Wissel. Volkswagen is now the main local employer, providing around 10,000 jobs. Read more: Trump’s car tariffs condemned. But car building is in people’s blood, with the first vehicle made here around 120 years ago. The city museum proudly displays cars through the ages. One room hosts shiny silver racing cars, another brightly colored Trabants. The August Horch Museum in Zwickau showcases the city’s long history of car making. The city of Zwickau has a rich history of car development, from the German empire to the modern republic, as explained by Thomas Stebich, head of the August Horch Museum. While the city celebrates its automotive heritage with immaculate displays, tariffs are causing uncertainty about the future. Stebich acknowledges that a decrease in American purchases of German cars could have a significant impact on the local economy, as high production numbers are needed to sustain jobs. The German auto industry, which employs around 700,000 people and generates over 540 billion euros in sales annually, has faced various challenges in recent years, including high costs, competition from China, and reduced domestic demand. Companies like Audi and VW have been forced to cut jobs as a result. The recent news of tariffs imposed by Trump has added to the woes of German car manufacturers and their workers. Concerns about the future of the industry and the city are shared by local business owners and residents, who fear the potential consequences of these tariffs. Volkswagen, as one of the largest employers in Zwickau, plays a crucial role in the local economy, and any negative impact on the company could have far-reaching effects. As the European Union evaluates how to respond to these tariffs, German automakers are bracing for the potential consequences and calling for a unified response to protect the industry.<br />
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