The entire automotive sector in Europe is not sleeping soundly. In Germany the Volkswagen Group is preparing for close three factories and could fire almost 300,000 people. The progressive decline in production will obviously have important repercussions on suppliers.
Schaeffler, a company with various brands that also produces various components for cars (for example Audi’s Multitronic) announced today that will lay off 4,700 employees in Europe. And it is not the only company linked to this sector that is preparing to cut production and staff.
As Automotive News Europe writes, Bosch has announced that it will not meet its financial goals this year; ZF Friedrichshafen plans to cut up to 14,000 positions by 2028; Continental considers spinning off its auto parts unit; Michelin plans to lay off 1,200 people and close two factories in France by 2026.
The reorganization and the cuts
Schaeffler’s main customer is the Volkswagen Group, which as we know is fighting with German unions over a 10% pay cut. The supplier announced that the layoffs are “in response to the difficult market contextthe growing intensity of global competition and the ongoing transformation processes affecting the automotive supply sector”.
In the third quarter of the year, Schaeffler was also hit by declining sales in its industrial business that produces components for wind turbines and industrial robots, so it will put its industrial robotics site Melior Motion up for sale.
Schaeffler instead increased sales in its e-mobility business in all regions thanks to the 3.6 billion euro acquisition of Vitesco Technologies Group, specialized in components for hybrid vehicles and with a strong presence in the electric vehicle supply chain.
Thanks to the reorganization plan, which will cost around 580 million euros, Schaeffler expects to save around 290 million euros ($315.4 million) per year by the end of 2029.
Source: it.motor1.com
