Major panic in the automotive sector, 50 percent of the sector may be laid off

The recent recession in the automotive industry continues to affect many markets around the world. Especially
VolkswagenThe decisions taken by have caused the existing problems of the sector to become more apparent. The company plans to lay off approximately 15 thousand employees by removing its job security policy. In addition, the closure of various factories increases job security concerns and may lead to an increase in unemployment rates in the sector.

The transition to electric cars is not going as smoothly as expected. Price fluctuations in the markets are causing a decrease in demand because electric vehicles do not reduce their costs. This situation negatively affects the sales of automotive companies. Stellantis CEOare Carlos Tavaresmade an important statement on this issue. Tavares stated that they will not make the same mistake as Volkswagen and will sell electric cars at similar prices to gasoline vehicles. This strategy aims to increase the company’s competitiveness.

Major panic in the automotive sector, 50 percent of the sector may be laid off

The French Automotive Suppliers Association has warned that falling sales and the slow-moving electric vehicle market could cause major turmoil in the sector. The association announced that approximately 50 percent of the automotive sector could lose their jobs in the next five years. These estimates paint a worrying picture for industry representatives and employees, while revealing that new strategies and solutions need to be developed in the automotive market.

These uncertainties in the automotive sector constitute an important turning point for both manufacturers and consumers. How this crisis will be overcome in the future is a matter of curiosity.