HomeEconomyAutomobile: the European federation of equipment manufacturers is alarmed by massive layoffs

Automobile: the European federation of equipment manufacturers is alarmed by massive layoffs

In Europe, 32,000 job cuts were announced in the first half of 2024, more than during the Covid pandemic, among these suppliers who employ 1.7 million employees in Europe.

European automotive equipment manufacturers raised the alarm on Monday over an unprecedented number of layoffs in the sector, calling into question the decline of the continent’s automotive market and the slow pace of its electrification. “This is the worst period we have ever known, and also the most difficult in terms of duration,” the secretary general of the European Automobile Suppliers Association (Clepa), Benjamin Krieger, stressed in an interview. The 2009 financial crisis, for example, was followed by a rapid recovery.

In the first half of 2024, 32,000 job cuts were announced in Europe, more than during the Covid pandemic, among these suppliers who employ 1.7 million employees in Europe. Since 2020, a total of 86,000 layoffs have been announced, especially in Germany and France. At the same time, only 29,000 positions were created, for a total of around 56,000 net cuts.

Review automobile decarbonization goals

Since the start of the pandemic, the European new car market has remained at a very weak level and the electrification of the market is proving much slower than expected.

Like many manufacturers, equipment manufacturers are calling on the European Commission to review automotive decarbonisation targets in the coming years, while Europe plans to ban the sale of new petrol and diesel cars in 2035. Equipment manufacturers are calling, in In particular, leave the door open in the coming years to technologies other than electric ones, whether more efficient combustion engines or plug-in hybrids.

Large suppliers have been less affected so far because “it was easier for them to invest in other sectors,” stressed Clepa president Matthias Zink, who is also general director of automotive technologies at German equipment manufacturer Schaeffler. But as the European market slows, sector giants have also announced savings plans, such as Bosch, ZF and Valeo.

Clepa also asks the Commission for measures to encourage investment in new technologies, with budgets comparable to the Chinese and American programs, and cheaper electricity to guarantee Europe’s competitiveness, summarized Benjamin Krieger.

Author: TT with AFP
Source: BFM TV

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