American customs tasks could cause damage to certain manufacturers of French teams working for German car manufacturers, according to Jean-Louis Pech, president of the Federation of Vehicle Equipment Industries (FEV). The crisis generated by the decisions announced last week by Donald Trump is weakening that a sector is already left to lose 10,000 additional jobs in two years due to a competitiveness deficit, the revolution of electricity and Chinese competition, he also said at a press conference on Tuesday.
“Indirectly, some equipment manufacturers working for German manufacturers will be affected by US customs’ tasks. The difficulty is that some were already fragility, so adding the penalty to bother can cause damage,” he said.
“These customs tasks (…) weaken even more, until the breakup, a certain number of actors. Although regardless of customs tasks (…) we will probably have to retire, within the two years that come, approximately 10,000 minimum works,” he added. According to the FEIG, the automotive suppliers sector has lost half of its work since 2007 and has no longer used in France that around 56,000 people.
10% business volume in 2023
The new US customs tasks, if confirmed over time, can increase the price of vehicles and reduce production volumes. Jean-Louis Pech did not identify companies at risk, simply emphasizing that many team manufacturers in eastern France work for French and German manufacturers.
According to a study conducted last month by the FEV, the manufacturers of French teams saw, during a quarter of them, their turnover decreases by more than 10% last year and expect the closure of 10 sites in France in the next twelve months. On a European scale, 42% of suppliers plan to make money in 2025, according to a McKinsey study for European manufacturers of CLA teams. The president of the FEV hopes that the crisis caused by Donald Trump does not serve as a pretext to stop carrying out structural reforms within the European automotive industry.
“If Europe does not change software and does not decide to protect its industry through clear acts, it will be taken between these two imperialism, American and Chinese, very different but that seem to fight very important for hegemony,” he added.
Source: BFM TV
