Business
Factbox-Europe’s embattled auto sector plans plant closures and layoffs
Published by Jessica Weisman-Pitts
Posted on December 23, 2024
3 min readLast updated: January 27, 2026
Global Banking & Finance Review®
Company
Published by Jessica Weisman-Pitts
Posted on December 23, 2024
3 min readLast updated: January 27, 2026
(Reuters) -Automotive companies across Europe have announced plant closures and big layoffs as they struggle with weak demand, high costs, competition from China and a slower-than-expected transition to electric vehicles.
(Reuters) -Automotive companies across Europe have announced plant closures and big layoffs as they struggle with weak demand, high costs, competition from China and a slower-than-expected transition to electric vehicles.
Below are layoffs and site closures announced in recent months, beginning with the latest:
VOLKSWAGEN
Europe’s top carmaker Volkswagen agreed a deal with unions on Dec. 20 to cut 35,000 jobs and to reduce factory output by almost a quarter in Germany, though there no immediate plant closures or layoffs.
Volkswagen said earlier in December that its Audi plant in Brussels will cease production by Feb. 28, after the company found no alternatives to closure.
FEINTOOL
Switzerland’s automotive supplier Feintool on Dec. 3 announced it will close one of its sites in Germany and lay off as many as 200 people.
VALEO
French car parts supplier Valeo 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
Carmaker Stellantis on Nov. 26 announced plans to shut its Vauxhall van factory in Luton, England, putting more than 1,000 jobs at risk.
It has repeatedly halted assembly operations at its main plant in Italy’s Mirafiori due to low demand, in particular for the electric version of Fiat 500.
The company said it had no plan to shut plants in Italy.
BOSCH
Bosch, the world’s biggest auto 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
U.S. automaker Ford on Nov. 20 said it would cut 4,000 jobs, primarily in Germany and Britain, representing 14% of its European workforce.
MICHELIN
French tire maker Michelin will shut two sites in western France, affecting about 1,250 jobs, it said on Nov. 5.
SCHAEFFLER
German machine and car parts maker Schaeffler said on Nov. 5 it planned to lay off 4,700 jobs in Europe, mostly in Germany, after its operating profit was almost halved in the third quarter.
The restructuring effort would include closures of the production facilities in Austria and Britain.
DAIMLER TRUCK
Daimler Truck, the world’s largest truckmaker, said on Aug. 1 it will cut hours and impose a job freeze for employees in its German business.
(Reporting by Reuters bureaux, compiled by Andrey Sychev in Gdansk; editing by Jason Neely and Bernadette Baum)
A plant closure refers to the permanent shutdown of a manufacturing facility, often resulting in job losses and reduced production capacity.
Layoffs are temporary or permanent dismissals of employees, often due to economic downturns, restructuring, or changes in business strategy.
Corporate strategy is a comprehensive plan that outlines how a company will achieve its goals and objectives, including decisions about resource allocation and market positioning.
The automotive industry encompasses the design, development, manufacturing, marketing, and selling of motor vehicles, including cars, trucks, and motorcycles.
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