Published by Global Banking and Finance Review
Posted on December 2, 2024
(Reuters) - A slew of automotive companies have recently announced plant closures and big layoffs in Europe as they struggle with weak demand, high production costs, competition from Chinese rivals and slower-than-expected electric vehicle transition.
Below are some of the companies which flagged layoffs and site closures announced in recent months:
* VALEO: French car parts supplier will cut around 1,000 jobs in Europe, sources told Reuters on Nov. 27, adding that the restructuring push will result in the closure of two French plants.
* STELLANTIS: The French-Italian carmaker on Nov. 26 announced plans to shut its Vauxhall van factory in southern England, putting more than 1,000 jobs at risk.
It has repeatedly halted assembly operations at its main plant in Italy's Mirafiori due to low demand, in particular for the electric version of Fiat 500.
The company said it had no plans to shut plants in Italy.
* BOSCH: The world's biggest car parts supplier plans to cut 5,500 jobs by 2032 in its cross-domain computer solutions and steering divisions, mostly at German sites, and reduce work hours for some employees, it said on Nov. 22.
* FORD: The U.S. automaker on Nov. 20 said it would cut 4,000 jobs, primarily in Germany and Britain, representing 14% of its European workforce.
* MICHELIN: The French tire maker will shut two sites in western France, affecting about 1,250 jobs, it said on Nov. 5.
* SCHAEFFLER: The German machine and car parts maker, hit by weak demand from auto and industrial clients, said on Nov. 5 it planned to cut 4,700 jobs, mostly in Germany.
The restructuring effort would also include closures of the production facilities in Austria and Britain.
* VOLKSWAGEN: Europe's top carmaker has threatened thousands of job cuts and potential plant closures in Germany as it embarks on tough talks with unions over the cost-cutting push.
On July 9, it put on sale its 3,000-people-strong Brussels site for premium brand Audi due to low demand for its higher-end electric cars.
* DAIMLER TRUCK: The world's largest truckmaker said on Aug. 1 it will cut hours and impose a job freeze for employees in its truck-making business in Germany.
(Reporting by Reuters bureaux, compiled by Andrey Sychev in Gdansk, editing by Ed Osmond)
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