YALIN KURU’s Post

German auto supplier Bosch plans to cut 5,500 jobs in its automotive division over the coming years, reflecting challenges in the German and global auto industries. The company cites stagnating global car sales, excessive factory capacity, and slower-than-anticipated adoption of electric vehicles (EVs) as key factors. The cuts, expected to conclude by 2032, will primarily impact Germany, with 3,500 jobs to be eliminated by 2027. These reductions will affect roles related to advanced driver assistance systems, automated driving technologies, and centralized vehicle software. Specific facilities, such as a plant in Hildesheim, will see significant downsizing, including 600 job losses by 2026. Bosch’s announcement follows similar moves by other automakers. Ford plans to cut 4,000 jobs in Europe, while Volkswagen faces labor unrest over potential factory closures. The auto industry faces declining sales in Europe as inflation dampens consumer spending, while EV sales underperform expectations amid stiff competition from Chinese brands. In Germany, the government’s abrupt end to EV purchase incentives last year caused a 27% drop in EV sales in 2024. Bosch, headquartered in Gerlingen near Stuttgart, employs 230,000 people in its mobility division out of a global workforce of 429,000. It emphasizes that the job reductions remain in the planning stage and will be carried out responsibly in consultation with employee representatives. Beyond automotive technologies, Bosch also manufactures industrial equipment, software, and consumer products like power tools. #germany #bosch #carindustry #vehicleindustry #autoindustry #vehicle #autocompany #automakers #ford #thesocialtalks

German auto supplier Bosch has announced plans to cut 5,500 jobs globally, with a significant portion of these cuts occurring in Germany. The decision is driven by weak demand for electric vehicles (EVs) and increased competition from cheaper Chinese alternatives. The company cited overcapacity in the auto industry and slower-than-expected market growth for future technologies as key factors. The job cuts will primarily affect the divisions working on advanced driver assistance and automated driving technologies. Bosch aims to navigate these challenges by reducing costs and adapting to the changing market environment. . . . . . . . . #Bosch #JobCuts #EVs #AutoIndustry #Germany

#FutureStarter Antonio Uscanga knew that ZF takes care of its employees, but the engineer from Mexico was surprised by how committed ZF is to setting up innovative teams. "We use the experience of everyone in the company to develop a complete system for electric cars - including the engine, transmission, inverters and even the axles," he says, describing the transformation. "For me, ZF is a hidden gem in the automotive industry. Our glimmer inspires employees and customers alike. " Read more about Antonio and his job at ZF: https://spr.ly/6045Z78BD #NextGenMobility

The Crisis of German Automakers – Prof. Bratzel's Analysis and Key Insights 📉 Declining Profits: •Operating profit (Ebit) of Volkswagen, BMW, and Mercedes dropped by 50% in Q3 2024 compared to the previous year, standing at just €7.1 billion. •Revenue also fell: a 6% decrease, amounting to a combined total of €145.4 billion. ⚠️ Background and Causes: •Post-COVID impact: The record-breaking years masked deep structural issues. •Weak demand, particularly in electric vehicles (EVs), is slowing growth. •A lack of orders and pessimistic export forecasts are further weighing on the industry. 📌 Prof. Stefan Bratzel’s Take: •German automakers are too slow and inefficient compared to international competitors in the EV market. •High costs and rigid decision-making processes prevent them from keeping pace with new market players, especially from China. •Germany as an automotive hub faces mounting pressure in the global competition. 👷 Industry Implications: •Volkswagen: Potential factory closures, planned wage cuts, and the risk of tens of thousands of job losses. •Ford: Plans to cut 2,900 jobs in Germany by 2027, especially in its Cologne EV facility. •Suppliers such as Bosch, ZF, and Continental are also planning to reduce their workforce significantly. 🚨 Call to Action: •The German auto industry must urgently become more agile and innovative. •In the EV sector, efficiency improvements and a strategic overhaul are critical to staying competitive internationally. •Strengthening R&D efforts and investing in future-oriented technologies will be pivotal. 💡 Conclusion: •According to Prof. Bratzel, the coming years could be brutal for the German automotive industry. •Now is the time to tackle structural challenges and reclaim the lead in the global automotive race. Link to the full article can be found in the comment section below. #AutomotiveIndustry #Transformation #Electromobility

#Bosch (ROBG.UL) forecasting weak #automotive market to impact operations https://lnkd.in/eShmp5Wr while #Forvia (FRVIA.PA) looks to opportunities from #Chinese automakers expanding operations in Europe https://lnkd.in/efDyvVy2

The supply chain that supports the #automotive sector is massive, when the auto #manufacturers begin to cut production and close plants the impacts on the broader #economy are far greater than initially imagined. -------------------------- "Falling car sales, the shift to electric vehicles, and increasing competition from Chinese manufacturers have created a tough environment for German automakers and their suppliers. “German automakers are facing a severe cost crisis as competition grows and sales decline,” Sell explained. Tensions are high at Bosch, and there is growing talk of strikes. Sell noted that workers might follow the example of Volkswagen employees, who recently used industrial action to push back against job cuts. A strike at Bosch could disrupt production at a time when the company is already struggling." https://lnkd.in/g-DrZ9jA

"𝐁𝐮𝐢𝐥𝐭 𝐭𝐨 𝐄𝐧𝐝𝐮𝐫𝐞, 𝐄𝐧𝐠𝐢𝐧𝐞𝐞𝐫𝐞𝐝 𝐭𝐨 𝐏𝐞𝐫𝐟𝐨𝐫𝐦."-IndustryARC™ Automotive Chassis Market size is estimated to reach $115.4 billion by 2030, growing at a CAGR of 5.5% during the forecast period 2024-2030. 👉 ➡️ 𝑫𝒐𝒘𝒏𝒍𝒐𝒂𝒅 𝑺𝒂𝒎𝒑𝒍𝒆 𝑹𝒆𝒑𝒐𝒓𝒕: @ https://lnkd.in/gvrF3qPX 𝐇𝐞𝐫𝐞 𝐚𝐫𝐞 𝐬𝐨𝐦𝐞 𝐤𝐞𝐲 𝐟𝐢𝐧𝐝𝐢𝐧𝐠𝐬 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐫𝐞𝐩𝐨𝐫𝐭 ▪ Increased demand for electric vehicles (EVs) in the US  #automotive industry is partly driven by government incentives and subsidies to promote clean  #energy adoption. Federal tax credits, state rebates, and other incentives encourage  #consumers to purchase EVs, reducing the overall cost of ownership and making  #electric  #vehicles more appealing in the market. ▪ Growing  #environmental awareness and concerns about climate change prompt consumers to seek alternative  #transportation solutions with lower carbon footprints. EVs are perceived as environmentally friendly options due to their zero tailpipe emissions, contributing to air quality improvement and reducing greenhouse gas emissions, thus driving demand for electric vehicles in the US automotive industry. ▪ Automotive Chassis is primarily driven by increasing environmental concerns. Automakers are introducing  #hybrid powertrains across various vehicle segments to improve  #fuel efficiency, reduce emissions, and meet regulatory requirements. 👉 𝐆𝐞𝐭 𝐌𝐨𝐫𝐞 𝐈𝐧𝐟𝐨: @ https://lnkd.in/gDxmiPVA The automotive industry faces the challenge of high R&D costs associated with the development of advanced technologies and innovative solutions. Automakers invest significant resources in R&D activities to stay competitive and meet evolving consumer demands, driving up overall production costs and posing financial challenges for industry players. Rapid technological advancements in areas such as electrification, autonomous driving, and connectivity increase the complexity of integrating new technologies into vehicles ✅𝗞𝗲𝘆 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀: ZF Group | Magna International | DENSO | Continental | Delphi Technologies | Hyundai MOBIS | Toyota Boshoku America | Bendix Commercial Vehicle Systems LLC | BorgWarner | Faurecia | JTEKT European Operations | Lear Corporation | Johnson Controls | NTN Bearing Corporation | Schaeffler | Tenneco | Valeo | Pirelli | CIE Automotive | Dana Incorporated | Adient | KYB Corporation | Renco |

Around 900,000 people work in the automotive industry in Germany - for now. Many will be eliminated in the coming years and not all of them can be replaced. Suppliers in particular are already feeling the effects of the crisis. Continental has launched a savings program for administration that is to cut 5,400 jobs there. 1,750 more jobs were cut in research and development. ZF Between 11,000 and 14,000 jobs are to be cut by 2028. Bosch has already cut thousands of jobs. Next year, another 1,500 jobs are to be affected at the sites in Stuttgart and Schwieberdingen in Baden-Württemberg. Schaeffler Continental's parent company Schaeffler has been running a savings program since 2022 that will cut around 1,300 jobs. Opel Before the Stellantis takeover, 15,000 people worked at the Rüsselsheim plant, now there are 8,300. Ford operates two plants in Germany, in Cologne and in Saarlouis in Saarland. The latter currently employs around 4,500 people, but in a few years this figure will be reduced to just 1,000. The Cologne plant is being converted into a production facility for electric cars. This will result in 2,300 jobs in administration, marketing, sales and services being lost. Volkswagen (VW) A hiring freeze has already been decided, and the elimination of more than 10,000 jobs has been announced in various cost-cutting programs. BMW There is currently no news of any job cuts at BMW. However, this only applies in net terms, as the Munich-based company also needs fewer employees to build electric cars than for combustion engines. However, the jobs saved there are to be created in the development of battery-powered vehicles. By at least 2030, more employees than before could be required BMW plans to launch its first-ever series production fuel cell electric vehicle (FCEV) in 2028 The situation at Mercedes Benz is similar to that at BMW. Last year, the Stuttgart-based company almost doubled its electric car sales worldwide to 315,000 vehicles. However, CEO Ole Källenius wants to save on management costs. Around ten percent of management levels are to be cut by 2026. Porsche There have been no specific job cuts at Porsche so far. At the end of last year, however, 600 temporary contracts in production were not renewed - but with around 37,000 employees, this is not an unusually high number. VW Germany's largest car company is just the tip of the iceberg. The entire industry is undergoing profound change. On the one hand, sales are lagging: In August, 197,000 new cars were registered in Germany, 28 percent fewer than a year earlier. Sales of electric cars even fell by 69 percent. On the other hand, technological change requires fewer employees. Electric cars consist of fewer components, meaning fewer employees have to assemble them. For German-based car manufacturers and suppliers, this means a profound, probably painful change.

Germany’s technology and services company Bosch said Friday it planned to reduce its automotive division workforce by as many as 5,500 jobs in the next several years in another sign of the headwinds hitting the German and global auto industries. https://lnkd.in/g2JK5K5Q

"𝐁𝐮𝐢𝐥𝐭 𝐭𝐨 𝐄𝐧𝐝𝐮𝐫𝐞, 𝐄𝐧𝐠𝐢𝐧𝐞𝐞𝐫𝐞𝐝 𝐭𝐨 𝐏𝐞𝐫𝐟𝐨𝐫𝐦."-IndustryARC™ Automotive Chassis Market size is estimated to reach $115.4 billion by 2030, growing at a CAGR of 5.5% during the forecast period 2024-2030. 👉 ➡️ 𝑫𝒐𝒘𝒏𝒍𝒐𝒂𝒅 𝑺𝒂𝒎𝒑𝒍𝒆 𝑹𝒆𝒑𝒐𝒓𝒕: @ https://lnkd.in/gcSKaQaP 𝐇𝐞𝐫𝐞 𝐚𝐫𝐞 𝐬𝐨𝐦𝐞 𝐤𝐞𝐲 𝐟𝐢𝐧𝐝𝐢𝐧𝐠𝐬 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐫𝐞𝐩𝐨𝐫𝐭 ▪ Increased demand for electric vehicles (EVs) in the US #automotive industry is partly driven by government incentives and subsidies to promote clean #energy adoption. Federal tax credits, state rebates, and other incentives encourage #consumers to purchase EVs, reducing the overall cost of ownership and making #electric #vehicles more appealing in the market. ▪ Growing #environmental awareness and concerns about climate change prompt consumers to seek alternative #transportation solutions with lower carbon footprints. EVs are perceived as environmentally friendly options due to their zero tailpipe emissions, contributing to air quality improvement and reducing greenhouse gas emissions, thus driving demand for electric vehicles in the US automotive industry. ▪ Automotive Chassis is primarily driven by increasing environmental concerns. Automakers are introducing #hybrid powertrains across various vehicle segments to improve #fuel efficiency, reduce emissions, and meet regulatory requirements. 👉 𝐆𝐞𝐭 𝐌𝐨𝐫𝐞 𝐈𝐧𝐟𝐨: @ https://lnkd.in/g8VfDi7b The automotive industry faces the challenge of high R&D costs associated with the development of advanced technologies and innovative solutions. Automakers invest significant resources in R&D activities to stay competitive and meet evolving consumer demands, driving up overall production costs and posing financial challenges for industry players. Rapid technological advancements in areas such as electrification, autonomous driving, and connectivity increase the complexity of integrating new technologies into vehicles ✅𝗞𝗲𝘆 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀: ZF Group | Magna International | DENSO | Continental | Delphi Technologies | Hyundai MOBIS | Toyota Boshoku America | Bendix Commercial Vehicle Systems LLC | BorgWarner | Faurecia | JTEKT European Operations | Lear Corporation | Johnson Controls | NTN Bearing Corporation | Schaeffler | Tenneco | Valeo | Pirelli | CIE Automotive | Dana Incorporated | Adient | KYB Corporation | Renco |