Auto industry must overhaul business as combustion demand falls

Unemployment in Styria rose in August, particularly in the automotive industry, as demand for combustion engines declines and electric mobility and autonomous driving reshape the sector, ORF reported.

The changes are forcing companies to reposition themselves. AVL, a major development services provider, is also affected, with 180 employees recently registered for dismissal.

Economic expert Ferdinand Dudenhöffer said the job cuts were part of a necessary adjustment across the industry. “This core business is increasingly disappearing because combustion engines are no longer needed to the same extent,” he said.

He said companies would have to move towards new technologies and business areas. China is leading changes in global automotive markets by increasingly focusing on electric mobility and autonomous vehicles, putting additional pressure on Western carmakers.

Dudenhöffer said closer cooperation with China would be crucial for success in the global market. “China is changing the world car. And if we want to be part of it, we have to work with the Chinese,” he said. The competition is forcing carmakers to develop innovative business models and prepare for a digital future.