More than half of Germany’s automotive suppliers are planning to cut jobs, according to a survey by the Association of German Chambers of Commerce and Industry (DIHK) reported by the Frankfurter Allgemeine Zeitung (FAZ) and dpa. Businesses say the cuts are being driven by a reduction in demand as the economy slows, as well as the switch to electric vehicles, which require fewer components, FAZ reports.

DIHK managing director Martin Wansleben says the automotive industry needs better support from the government as it adjusts to new EU fleet emission limits and carbon prices, forcing it to make the transition to electric vehicles. “We need a clear strategy for the expansion of the charging infrastructure and from 2021 a fair cost compensation for higher CO2 prices on gas, oil and fuels,” Wansleben said.

Experts see both 2020 and the coming decade as “critical” for the German car industry, as it navigates new emissions standards and the shift to electric vehicles.