Even worse than the peak of the pandemic

Currently, Europe's auto parts industry is experiencing its largest wave of layoffs in years, with severity even surpassing the peak of the pandemic. In Germany, numerous auto parts suppliers have announced workforce reductions. Brose is cutting 950 jobs, Bosch plans to lay off thousands (including 1,200 in its drive division), ZF intends to eliminate a quarter of its workforce, and Schaeffler has initiated layoffs following its merger with Vitesco Technologies.

In this tightly interconnected value chain, crises at major corporations quickly ripple through Germany's many small businesses. The European Association of Automotive Suppliers (CLEPA) warns that job cuts will continue. Since 2020, Europe's auto parts supplier sector has lost 86,000 jobs, with net job losses reaching 56,000 even after accounting for new positions created in emerging fields like electric vehicles. Just in the first half of 2024, 32,000 layoffs were announced - exceeding the worst period of the pandemic.

German auto parts suppliers have been hit hardest, accounting for 59% of all job losses (approximately 52,000 positions since 2020). CLEPA Secretary General Benjamin Krieger notes these latest figures serve as a clear warning, stating that EU-level policy changes are urgently needed to prevent Europe's automotive industry from losing its dominant position. The association warns that European suppliers' profits are insufficient for necessary investments - a critical issue during the EV transition as the number of required components decreases.

Mid-sized companies face tremendous pressure during this already challenging transition period, grappling with regulatory uncertainty and frequent order fluctuations. Solving Europe's auto parts industry crisis requires urgent attention and collaborative solutions to ensure the sector's stable development and safeguard the future of European automotive manufacturing.