Job Losses Rise Among European Auto Parts Suppliers - FT

Forex - Job losses among European automotive parts suppliers more than doubled in 2024 as the slowdown in the continent's automotive industry impacted the fate of the production supply chain. According to an analysis by the European Automotive Suppliers Association (Clepa) for the Financial Times, job losses in the sector, which were just over 15,000 in 2023, exceeded 30,000 in 2024. Job creation also slowed, with over 58,000 net job losses experienced across the sector in Europe since 2020. Various companies, from French tire manufacturer Michelin (EPA:MICP) to German manufacturer Bosch, announced last year that they had laid off thousands of workers due to a steady decline in new vehicle sales for European manufacturers, leaving suppliers with excess capacity and very little recovery expected in sales. While large companies are making layoffs and closing factories, some smaller businesses have been forced into bankruptcy or have filed for bankruptcy. Alexandre Marian, a director at consulting firm AlixPartners, stated, "If there is no growth for European manufacturers, there is no growth for equipment manufacturers either." According to Clepa, automotive parts suppliers directly employ around 1.7 million people in the EU.