On November 24th, local time, Bosch, the world's largest automotive parts supplier, announced that it will cut the working hours and salaries of about 10000 employees in Germany. This large-scale layoff and salary reduction means that the crisis in the German and even European automotive industry is becoming increasingly severe.
Previously, Ford Motor Company announced on the 20th that due to economic headwinds, intensified competitive pressure, and lower than expected electric vehicle sales, the company will lay off 4000 employees in Europe and the UK by the end of 2027. Ford stated that the majority of the layoffs (2900) are in Germany, and the company will implement the layoff plan in consultation with employee representatives.
Ford is not the only car company that has been deeply mired in sales and layoffs recently. On November 23rd local time, the head of the Volkswagen brand in Germany, Sch ö fer, stated in an interview that Volkswagen's factory closure and layoffs in Germany are inevitable. Sch ö fer believes that Volkswagen cannot rely solely on "Band Aid" measures to get out of its current predicament. Volkswagen's labor costs are currently nearly twice that of its European counterparts, requiring a reduction of 4 billion euros within 3 to 4 years.
On November 21st, Volkswagen Group held a new round of labor negotiations with the union. The German union organization IG Metall made concessions and declared an open attitude towards reducing labor costs and cutting production capacity. The differences between the two sides have decreased compared to the negotiations held on October 30th. Previously, Volkswagen emphasized that the employment security agreement, which promised not to lay off employees, would terminate as planned on November 30th, and proposed a 10% salary reduction for all employees. After this round of labor management negotiations, the next round of negotiations will be held on December 9th.
According to data from the European Association of Automobile Manufacturers, in the first ten months of 2024, the number of new car registrations in Europe was 8.9 million, a slight increase of 0.7% year-on-year. Among them, France and Germany fell by 2.7% and 0.4% respectively. Specifically in the electric vehicle market, in the first ten months of 2024, European electric vehicle sales decreased by 4.9% year-on-year, and market share decreased by 0.8 percentage points year-on-year to 13.2%.
Nowadays, the crisis in the European automotive industry has spread to the supply chain.
On November 22, Bosch announced that it will cut jobs related to autonomous driving and automotive steering products in Germany, with 5500 jobs globally, including 3800 jobs in Germany. "The automotive industry is facing serious overcapacity, increasing competition and price pressure." On November 24, Bosch once again announced that it will further reduce the working hours and salaries of about 10000 employees in Germany on the basis of its previous salary reduction plan.
Another German automotive parts giant, Schaeffler Group, announced on the 5th that it will lay off about 4700 employees in Europe, including about 2800 employees in Germany. In July of this year, German automotive parts supplier ZF announced that it would lay off 14000 employees by 2028. At the beginning of the year, French automotive parts giant Faurecia planned to lay off 1150 employees worldwide, mainly targeting white-collar workers.
Affected by tariff policies, the sales performance of electric vehicles in Europe may be further impacted in November and December before the end of the year.
Chinese automotive industry chain enterprises are accelerating their localization process in Europe.
Chery and Spain's Ebro company jointly established the Ebro factory in the Barcelona Free Trade Zone, which officially started production of the first model S700 on the 23rd. The factory will also start production of S800 in the coming weeks. According to the plan, the Ebro factory will incorporate welding, spraying, and vehicle assembly into production by 2025, further enhancing the factory's production capacity. It will also strengthen the local supply chain and drive the development of the surrounding economy.
CATL announced on the 20th that it is accelerating its battery recycling business in Europe. Its new battery manufacturing plant in Hungary is expected to start production in the second half of 2025, while the battery remanufacturing center will be completed in 2026.
Affected by sluggish sales and layoffs, it is reported that Bernd Lange, Chairman of the International Trade Committee of the European Parliament, stated in an interview on the 22nd that the EU and China may renegotiate the agreement and lift tariffs on electric vehicles imported from China to Europe.