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Factbox-Europe's embattled auto sector plans plant closures and layoffs

Published 12/23/2024, 07:22 AM
Updated 12/23/2024, 07:26 AM
© Reuters. FILE PHOTO: A general view of a Volkswagen plant in Kassel, Germany, December 17, 2024. REUTERS/Fabian Bimmer/File Photo
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(Reuters) -Automotive companies across Europe have announced plant closures and big layoffs as they struggle with weak demand, high costs, competition from China and a slower-than-expected transition to electric vehicles.

Below are layoffs and site closures announced in recent months, beginning with the latest:

VOLKSWAGEN

Europe's top carmaker Volkswagen (ETR:VOWG_p) agreed a deal with unions on Dec. 20 to cut 35,000 jobs and to reduce factory output by almost a quarter in Germany, though there no immediate plant closures or layoffs.

Volkswagen said earlier in December that its Audi plant in Brussels will cease production by Feb. 28, after the company found no alternatives to closure.

FEINTOOL

Switzerland's automotive supplier Feintool on Dec. 3 announced it will close one of its sites in Germany and lay off as many as 200 people.

VALEO

French car parts supplier Valeo (EPA:VLOF) 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

Carmaker Stellantis (NYSE:STLA) on Nov. 26 announced plans to shut its Vauxhall van factory in Luton, 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 (BIT:STLAM) 500.

The company said it had no plan to shut plants in Italy.

BOSCH

Bosch (NS:BOSH), the world's biggest auto 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

U.S. automaker Ford (NYSE:F) on Nov. 20 said it would cut 4,000 jobs, primarily in Germany and Britain, representing 14% of its European workforce.

MICHELIN

French tire maker Michelin (EPA:MICP) will shut two sites in western France, affecting about 1,250 jobs, it said on Nov. 5.

SCHAEFFLER

German machine and car parts maker Schaeffler said on Nov. 5 it planned to lay off 4,700 jobs in Europe, mostly in Germany, after its operating profit was almost halved in the third quarter.

The restructuring effort would include closures of the production facilities in Austria and Britain.

© Reuters. FILE PHOTO: A general view of a Volkswagen plant in Kassel, Germany, December 17, 2024. REUTERS/Fabian Bimmer/File Photo

DAIMLER TRUCK

Daimler (OTC:MBGAF) Truck, the world's largest truckmaker, said on Aug. 1 it will cut hours and impose a job freeze for employees in its German business.

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