Struggling European auto sector plans factory closures, layoffs

Dec 23 (Reuters) – European automakers announced factory closures and mass layoffs as they face weak demand, high costs, competition from China and a slower transition to planned towards electric vehicles.

Below are the layoffs and site closures announced over the past few months, starting with the latest:

Europe’s largest carmaker Volkswagen reached an agreement with unions on December 20 to cut 35,000 jobs and reduce production at its factories by almost a quarter in Germany, without carrying out factory closures or layoffs immediate.

Volkswagen said earlier in December that its Audi plant in Brussels

on Feb. 28, after the company found no alternative to closing.

Swiss automotive supplier Feintool announced on December 3 that it would close one of its sites in Germany and lay off up to 200 people.

French equipment maker Valeo will cut around 1,000 jobs in Europe, sources told Reuters on November 27, adding that the restructuring would lead to the closure of two French factories.

Car manufacturer Stellantis announced plans on November 26 to close its Vauxhall van factory in Luton, England, putting more than 1,000 jobs at risk.

The group has repeatedly halted assembly operations at its main plant in Mirafiori, Italy, due to low demand, particularly for the electric version of the Fiat 500.

The company said it had no plans to close factories in Italy.

Bosch, the world’s largest supplier of auto parts, plans to cut 5,500 jobs by 2032 in its IT solutions and cross-domain management divisions, mainly at its German sites, and reduce working hours of some employees , he announced on November 22.

The American car manufacturer Ford announced on November 20 that it would cut 4,000 jobs, mainly in Germany and Great Britain, representing 14% of its European workforce.

French tire manufacturer Michelin will close two sites in western France, affecting around 1,250 jobs, it announced on November 5.

German machinery and auto parts maker Schaeffler announced on November 5 that it planned to cut 4,700 jobs in Europe, mainly in Germany, after its operating profit was cut by almost half in the third quarter.

The restructuring effort would include closing production facilities in Austria and Britain.

Daimler Truck, the world’s largest truck maker, announced Aug. 1 that it would cut hours and impose a job freeze on employees at its German operation.

(Reporting from Reuters offices, compiled by Andrey Sychev in Gdansk; editing by Jason Neely and Bernadette Baum)