According to the analysis of the French Association of Auto Components, up to half of the employees in this sector could lose their jobs. A delay in the transition to electric cars is requested.
The crisis in the automotive sector in Europe is much deeper than the crisis in one concern. The French are also warning of the possibility of mass layoffs at French companies that produce automotive components.
Jean-Louis Pech, head of the Association of French Automotive Component Manufacturers (FIEV), said the sector is at risk of losing half of its jobs in the coming years. “Given the activity, it is possible to lose more than half of the jobs in the next 5 years. This number, unfortunately, is not exaggerated.” Pech cited declining car sales, a weakening electric car market and increasing competition from China as reasons for this assessment.
The FIEV announcement states that the crisis comes as a result of a series of events, such as COVID, the semiconductor crisis, a significant increase in the prices of raw materials, transport and energy. The required transition to electric cars from 2035, competition from China and new regulations also contribute significantly to this. Since 2019, the automotive component manufacturing sector has seen a 10% drop in turnover and a 17% decrease in the number of employees.
In this context, FIEV, which gathers 300 companies that employ about 60,000 people, proposes to change the deadline for the transition to electric cars in 2035, to restore competitiveness, and to create new conditions for the revival of the French and European automotive industry.
Source: Automagazin.rs
Photo: Archive Autoblog.rs / Renault
Source: autoblog.rs
