The pressure is mounting on European carmakers and suppliers, driven by a combination of falling demand, high costs, competition from Chinese manufacturers and difficulties in transitioning to electric vehicles. Announcements of closures and layoffs have been coming in waves over the past month or two, including from some of the biggest names in the industry.
Volkswagen
Europe’s top automaker reached a deal with unions on December 20 to cut 35,000 jobs and reduce production in Germany by nearly 25%. However, there will be no immediate plant closures or layoffs.
In December, Volkswagen said that its Audi plant in Brussels, Belgium, would cease production on February 28, after finding no alternative other than closing it.
Volkswagen is not only Germany's largest carmaker, but also the continent's largest. Its decline has had a major impact on the German economy, and is part of the current crisis for the entire industry in Europe.
On November 26, Stellantis announced that it would close its Vauxhall van factory in Luton, England, putting more than 1,000 jobs at risk. The company has repeatedly suspended assembly operations at its main factory in Mirafiori, Italy, due to low demand, especially for the electric version of the Fiat 500. However, Stellantis said it has no plans to close its factory in Italy.
The group also has similar plans elsewhere. On November 6, Stellantis said it would eliminate a production line and reduce 1,100 employees at its Jeep plant in Ohio (USA).
Previously, in August, the company announced that it would lay off up to 2,450 workers at the Warren Truck assembly plant outside Detroit (USA) when it stopped producing the Ram 1500 Classic pickup line.
Daimler Truck
The world's largest truck maker announced on August 1 that it would cut working hours and impose a hiring freeze in Germany, citing a sharp drop in demand in the European market.
Total orders for the company in the first half of the year fell 10% compared to the same period in 2023, to 198,376 vehicles.
The US automaker announced on November 20 that it would cut about 4,000 jobs, mainly in Germany and the UK, representing 14% of its European workforce and about 2.3% of Ford's current total workforce of 174,000.
Ford said the cuts would take place before the end of 2027, subject to discussions with unions. The specific numbers include 2,900 jobs in Germany and 800 in the UK, and a reduction in production of the all-electric Explorer and Capri models at its Cologne, Germany, plant.
Michelin
French tyre maker Michelin will close two facilities in western France, it said on November 5. The move will result in the loss of about 1,250 jobs. Michelin said the move was due to high costs and competition from Asian rivals with low-cost products.
Schaeffler
Also on November 5, German machinery and auto parts manufacturer Schaeffler said it would lay off 4,700 employees in Europe, mainly in Germany, as its operating profit fell by nearly half in the third quarter. According to the company, the restructuring plan includes closing production facilities in Austria and the UK.
