The European automotive supply chain faces deepening turmoil, with industry giants like Bosch, Valeo, and Ford announcing extensive layoffs. These developments underscore the ongoing slump in market conditions and the mounting pressure on supply chain sustainability across the region.
A leading German trade union warns that Ford's plans to lay off thousands of workers as part of its restructuring could spell the gradual closure of its Cologne production facility, amplifying the impact of cost-cutting measures on Europe's automotive supply chain.
The EU's proposed tariff hikes are already affecting Chinese EV manufacturers' expansion into Europe. Early impacts include a noticeable drop in Chinese automakers' EU market share for EV deliveries, with effects evident as early as October.
Dataforce reports that SAIC Motor's MG and BYD held a combined EU market share of 8.2% for new EV registrations in October, down from 8.5% in September. This marks the fourth consecutive month their market share has fallen behind 2023 levels.
As economic pressures weigh on the European and US automotive supply chains, Chinese automakers continue to face headwinds in the EU's EV market. The impending EU tariffs are already curbing their progress.
Europe's EV market faces mounting challenges as reduced subsidies in major markets like Germany dampen demand.
Bloomberg reports that Valeo will close two French factories and lay off around 1,000 workers across Europe. This move reflects a gloomy automotive outlook and rising competition from lower-cost Chinese imports, which have diminished European suppliers' competitiveness.
Valeo plans workforce reductions in France, Germany, Poland, and the Czech Republic, citing a prolonged decline in European sales and dwindling competitiveness. The automotive supplier employs 112,700 people globally, including 13,500 in France.
Major automakers including Ford, Volkswagen AG, and Stellantis are scaling back costs in response to declining demand.
Ford plans to eliminate 4,000 European jobs by 2027, citing sluggish economic conditions and underwhelming EV demand. The cuts will primarily affect Germany, with smaller reductions in the UK and elsewhere.
Electrek reports that Ford has reduced production of its electric Explorer and Capri models at its Cologne EV plant. Germany's IG Metal trade union warns this decision jeopardizes the plant's future.
Bosch announced in early November plans to cut 7,000 German jobs, mostly in its automotive supply unit. CEO Stefan Hartung warned that further adjustments may follow as the company struggles to meet 2024 economic targets.
Chinese automakers face growing risks from EU tariffs, with trade tensions adding to global industry uncertainty. For instance, Chery Automobile has postponed plans to refurbish a Barcelona factory for EV production.
As President-elect Donald Trump signals new tariff measures, Chinese automakers are expected to intensify efforts to establish overseas manufacturing to navigate potential trade barriers, according to VOA.
The European Automobile Manufacturers' Association (EAMA) reported that while pure EV registrations rose 6.9% in October, they remain 1.7% lower compared to the same period in 2024.
