Automotive Industry Braces for Massive Job Cuts as Crisis Deepens
The automotive industry is grappling with a deepening crisis, with job cuts looming large. Major suppliers like Bosch and ZF are planning significant reductions, while smaller companies face insolvency. German Chancellor Friedrich Merz is convening an automotive summit on October 9 to address the worsening situation.
Bosch, a major automotive supplier, is planning to cut an additional 13,000 jobs by 2030, on top of previous reductions. Trade unions are gearing up to resist these cuts, particularly in Stuttgart and other affected sites. Similarly, ZF Friedrichshafen AG is set to cut between 11,000 and 14,000 jobs by 2028 to offset a 1.02 billion loss. Experts predict around 100,000 jobs could be lost among suppliers by 2030.
The crisis is not sparing smaller companies. The family-owned Mastel was recently taken over by GLEICH 1 Verwaltungs GmbH and W. Hartmann & Co. GmbH to save jobs. Almost all major car manufacturers have reported significant losses, leading to reduced production and fewer parts needed.
The automotive summit on October 9 will bring together stakeholders to discuss solutions to the industry's crisis. With thousands of livelihoods at stake, the focus will be on mitigating job losses and finding a path to recovery for the struggling sector.
Read also:
- International powers, including France, Germany, and the UK, advocate for the reinstatement of sanctions against Iran.
- Companies urged to combat employee resignation crisis, as per findings from the Addeco Group
- Republicans advocate Trump's domestic policy plans in Iowa, though some business owners remain skeptic
- Global carbon emissions could lead to a resurgence in coal usage, warns industry analyst
