Indrek Reimann’s Post

#Europe is the cradle of the global #automotive industry, but it is currently going through an unprecedented crisis. According to incomplete statistics from a #China #BusinessNews reporter, eight companies, including #Volkswagen, #Audi, #Ford and #Stellantis, as well as four industry giants, will lay off about 50,000 people in #Europe. Among the automakers surveyed, Volkswagen has the largest number of layoffs, followed by Audi. The scale of layoffs in the auto parts industry is even more exaggerated than that of the automakers, with two companies planning to lay off more than 10,000 people. Among them, the #BoschGroup has decided to lay off more than 7,000 people in #Germany, including as many as 3,200 people in the automotive supply department. This is the third layoff plan this year by the German auto parts company, which has already laid off 4,700 people in January and February this year. In addition to the Bosch Group, #ZF also announced in July this year that it plans to gradually reduce the number of its German employees from the current 54,000 to 11,000 to 14,000 by the end of 2028. #Schaeffler and #Michelin will lay off slightly fewer people. Among them, the Schaeffler Group will lay off about 3,700 people in Europe, or about 3.1 percent of the total number of employees. Among them, it will cut about 2,800 jobs in Germany close 2 European plants. Michelin plans to close two of its plants in Cholet and Vannes, France, which will result in the loss of about 1,250 workers. The most direct reason behind the massive layoffs in the European automotive industry is the companies' operational pressures. In the third quarter of this year, key financial indicators of European automakers collapsed almost completely, and the net profits of several major automakers fell by double digits from a year earlier.

😂 The two giants of the European automotive industry, Volkswagen and Stellantis, have entered a difficult period of "cutting off the rot to heal the wound" under the multiple pressures of market decline, electric vehicle transformation, and increasingly fierce competition. Volkswagen is encountering employee strikes due to its cost-cutting plan of closing three factories in Germany, laying off tens of thousands of people, and implementing a 10% pay cut for all employees. Stellantis is beset with difficulties both internally and externally, experiencing the "loss" of major markets, shrinking market share, a "reshuffle" of the executive team, and the dismissal of the CEO. When the lips are gone, the teeth will feel cold. As the leading European automakers "enter the cold winter", automotive parts suppliers also feel the chill. Tens of thousands of people are being laid off, and plans are being made to close or sell factories. Tier 1 automotive suppliers in Europe are facing a wave of layoffs. Robert Bosch, the world's largest automotive parts supplier, has announced plans to lay off more than 12,000 people globally, of which 7,000 will be in Germany alone. ZF, the world's second-largest supplier, plans to lay off between 11,000 and 14,000 people globally by 2028. Continental Group, ranked eighth in the world, will lay off 7,150 people globally, including about 3,000 in Europe. Forvia, ranked ninth globally, said that by 2028, the company will lay off more than 10,000 people in Europe, accounting for 13% of its total workforce. Valeo, the 11th largest automotive parts supplier in the world, plans to lay off more than 2,000 people, at least half of whom will be in France. At the same time, the company will also close several small factories. Mahle, ranked 22nd, will cut 600 employees in Slovenia. Schaeffler, ranked 27th, will lay off 4,700 people globally, about 2,800 of whom will be in Europe, and will close factories in the UK and Austria. #Europe# #Automotive# #Mexico# #job# #layoffs##Volkswagen#

Volkswagen Group plans major layoffs, company to shut at least three plants in Germany. It will also slash salaries by 10% as cost-cutting measures with no salary increases in 2025 and 2026. There are listed Indian companies who could be affected due to this move like Bosch . Motherson Group is another company I could think of, who could be impacted due to this move. All and all, automobile sector space is not looking good at all. We have seen US automobile sector struggling (updated here). In India, sales are down and showrooms have huge unsold inventory. Even Europe is struggling now. Disclaimer - Please consult your financial advisor and this is not any buy/sell call. #Research #AutoSectors #FY25 #India

https://lnkd.in/gHZ-t6Ar Automotive industry is in the juncture of change over from Gasoline to EVs and Hybrids .I belive this slow sales is a temporary situvation of Automotive . It is going to be technology changes in Automotive Cars , Buses , Trucks , from pure gasoline to Electeic Vehicles in the coming days and EV sales keep improving and Gasoline vehicles reducing going further . Now all industries is in the process of Change over Management to EVs and Hybrid vehicles.

Nissan Motor announces restructuring with massive layoffs globally. ● This is due to weakening sales in China and America ● 9,000 jobs (equivalent to 6.7% of its global work force) to be affected with 20% reduction in global manufacturing facility ● CEO to take 50% pay cut along with other senior executives, who will opt for voluntary pay cuts ● Sell their stake upto 10% in Mitsubishi Motors ● Reduce vehicle development lead time to 30 months ● Deepen their collaboration with Partners including Renault and Mitsubishi Motors All these efforts are expected to reduce their cost upto 400 billion Yen. #AutomobileIndustry #ToughCompetition #Layoffs

Volkswagen plans major layoffs, company to shut at least three plants in Germany. It will also slash salaries by 10% as cost-cutting measures with no salary increases in 2025 and 2026. There are listed Indian companies who could be affected due to this move like Bosch. Motherson is another company I could think of, who could be impacted due to this move. All and all, automobile sector space is not looking good at all. We have seen US automobile sector struggling (updated here). In India, sales are down and showrooms have huge unsold inventory. Even Europe is struggling now. Disclaimer - Please consult your financial advisor and this is not any buy/sell call.

Volkswagen plans major layoffs, company to shut at least three plants in Germany. It will also slash salaries by 10% as cost-cutting measures with no salary increases in 2025 and 2026. There are listed Indian companies who could be affected due to this move like Bosch. Motherson is another company I could think of, who could be impacted due to this move. All and all, automobile sector space is not looking good at all. We have seen US automobile sector struggling (updated here). In India, sales are down and showrooms have huge unsold inventory. Even Europe is struggling now. Disclaimer - Please consult your financial advisor and this is not any buy/sell call.

💼 Major Shift at GM: Job Cuts Announced 💡 General Motors has just announced a significant reduction in its workforce within the software and services sectors. This move is part of their larger strategy to bolster technology investments and maintain profitability. By cutting over 1,000 salaried positions, with 600 from their tech HQ near Detroit, GM aims to streamline operations and focus on areas promising the greatest future impact. It's a tough climate for the automotive industry, and GM's proactive steps highlight both the challenges and opportunities ahead. With a global salaried workforce of about 76,000 as of last year, these layoffs represent roughly 1.3% of their salaried employees. Despite the downsizing, GM continues to see strong sales in North America and has committed to significant investments in electric and autonomous vehicles. Their recent profit reports, showing resilience despite setbacks in China, reflect a company adapting to a fast-evolving market. These job cuts reflect broader industry trends where operational costs are being tightly monitored to better focus on emerging technologies. As GM navigates this transition, it's clear their commitment to sustainable growth remains firm. Let's discuss how these changes may impact the industry. Your thoughts? 👇 #Automotive #TechInvestments #FutureOfWork

The #automotive sector is facing some tough times right now, with layoffs making headlines everywhere! 😢 Check out this list of automotive companies in Europe that are announcing plant closures and job cuts*: 📌 Valeo French car parts supplier will cut around 1,000 jobs in Europe, sources told Reuters on Nov. 27, adding that the restructuring push will result in the closure of two French plants. 📌 Stellantis The French-Italian carmaker on Nov. 26 announced plans to shut its Vauxhall van factory in southern England, putting more than 1,000 jobs at risk. It has repeatedly halted assembly operations at its main plant in Mirafiori due to low demand, in particular for the electric version of Fiat 500. The company said it had no plans to shut plants in Italy. 📌 Bosch The world's biggest car parts supplier plans to cut 5,500 jobs by 2032 in its cross-domain computer solutions and steering divisions, mostly at German sites, and reduce work hours for some employees, it said on Nov. 22. 📌 Ford Motor Company The U.S. automaker on Nov. 20 said it would cut 4,000 jobs, primarily in Germany and Britain, representing 14% of its European workforce. 📌 Michelin The French tire maker will shut two sites in western France, affecting about 1,250 jobs, it said on Nov. 5. 📌 Schaeffler The German machine and car parts maker, hit by weak demand from auto and industrial clients, said on Nov. 5 it planned to cut 4,700 jobs, mostly in Germany. The restructuring effort would alsoinclude closures of the production facilities in Austria and Britain. 📌 Volkswagen Group Europe's top carmaker has threatenedthousands of job cuts and potential plant closures in Germany as it embarks on toughtalks with unions over the cost-cutting push. On July 9, it put on sale its 3,000-people-strong Brussels site for premium brand Audi due to low demand for its higher-end electric cars. 📌 Daimler Truck AG The world's largest truckmaker said on Aug. 1 it will cut hours and impose a job freeze for employees in its truck-making business in Germany. 📌 Northvolt The number of layoffs at troubled Swedish battery maker Northvolt AB is now at around 1,200. https://lnkd.in/ejTaFWcU 📌 AUDI AG The planned job cuts will primarily target indirect roles within the company, particularly in areas like development, where more than 2,000 positions could be affected. https://lnkd.in/eH2TGBTx 📌 MAGNA POWERTRAIN AG Victims of e-mobility: 200 layoffs at Magna Powertrain and social plan for Magna Steyr. https://lnkd.in/e97ATTe7 *source: Reuters

In recent weeks, German automakers and other companies in the auto industry have announced major layoffs—an unusual move for the German economy. Volkswagen In October 2024, Volkswagen announced plans to close at least three factories in Germany, which could result in tens of thousands of job cuts. The company is also considering a 10% wage reduction and a two-year freeze on wages to reduce costs and stay competitive as sales and profits decline. Schaeffler Schaeffler recently announced it will cut 2,800 jobs in Germany and 4,700 across Europe after its merger with Vitesco. The IG Metall union has requested a reconsideration and alternative solutions. These changes highlight that, even in Germany—where jobs have traditionally been stable—companies are now making cost-cutting decisions that impact employees. This means workers need to be prepared for change and take control of their own career paths. The auto industry, once considered stable and safe, is facing significant changes, and this trend may continue. Those who cannot show unique value in the job market may be especially vulnerable. For more insights on these changes and how to prepare for the future, tune in to the JOB: Your Career in Germany on OstWestTV. 🕒 First episode: “The Future of Work” airs today at 16:00.