Automotive Industry Layoffs and Closures in Europe

(Reuters) – Automotive companies across Europe have announced plant closures and significant layoffs as they struggle with weak demand, high costs, competition from China, and a slower-than-expected transition to electric vehicles.

Recent Layoffs and Site Closures

VOLKSWAGEN

Europe's top carmaker Volkswagen (ETR:VOWG_p) agreed on Dec. 20 to cut 35,000 jobs and reduce factory output by almost a quarter in Germany; however, there are no immediate plant closures or layoffs. Earlier in December, Volkswagen announced that its Audi plant in Brussels would cease production by Feb. 28, as no alternatives to closure were found.

FEINTOOL

On Dec. 3, Switzerland's automotive supplier Feintool announced it would close one of its sites in Germany, impacting as many as 200 employees.

VALEO

French car parts supplier Valeo (EPA:VLOF) plans to cut around 1,000 jobs in Europe, with two French plants set for closure, as reported on Nov. 27.

STELLANTIS

On Nov. 26, carmaker Stellantis (NYSE:STLA) announced plans to shut its Vauxhall van factory in Luton, England, which puts over 1,000 jobs at risk. It has frequently paused assembly operations in its main plant in Italy's Mirafiori due to low demand, especially for the electric Fiat (BIT:STLAM) 500, though it stated no plans to shut Italian plants.

BOSCH

The world's largest auto parts supplier, Bosch (NS:BOSH), plans to cut 5,500 jobs by 2032 in its cross-domain computer solutions and steering divisions, primarily at German sites, and will reduce work hours for some employees, as stated on Nov. 22.

FORD

U.S. automaker Ford (NYSE:F) announced on Nov. 20 that it would cut 4,000 jobs, mainly in Germany and Britain, equating to 14% of its European workforce.

MICHELIN

French tire maker Michelin (EPA:MICP) plans to shut two sites in western France, affecting approximately 1,250 jobs, as reported on Nov. 5.

SCHAEFFLER

On Nov. 5, German machine and car parts maker Schaeffler announced plans to lay off 4,700 jobs in Europe, primarily in Germany, after its operating profit nearly halved in the third quarter. The restructuring will include closures of production facilities in Austria and Britain.

DAIMLER TRUCK

On Aug. 1, Daimler (OTC:MBGAF) Truck, the world's largest truckmaker, announced it will cut hours and implement a job freeze for employees in its German operations.