Roundup: German automotive suppliers consider massive job cuts

  • World
  • Wednesday, 24 Jan 2024

FRANKFURT, Jan. 23 (Xinhua) -- Tens of thousands of jobs are set to be axed in the German automotive industry, as suppliers grapple with electrification.

ZF, one of Germany's largest car suppliers, may have to cut at least 12,000 jobs -- around a quarter of its workforce in the country -- in the coming years. 10,000 of these jobs could go by 2028.

The switch to e-mobility will cost jobs as electric vehicles have far fewer parts than internal combustion engine vehicles, requiring fewer workers.

"Where we need two employees for gearbox assembly, we only need one for electric motors," said a ZF spokesperson.

However, ZF has been criticized in the automotive industry for failing to deal with the e-mobility transformation swiftly.

Bosch, the largest automotive supplier in Germany, is also planning to slash 1,200 jobs in the software division of the company's fully-automated driving department by the end of 2026.

The transition to fully-automated driving has been slowed down by factors including rising production costs, the company explained.

According to some studies, 40 percent of jobs in the German automotive industry could be lost.

Thomas Schaefer, the CEO of Europe's largest automaker Volkswagen, warned in July that "the roof is on fire."

Sentiment in the German automotive industry remained subdued in December 2023, the German economic think tank Ifo institute said in a recent report.

However, new vehicle registrations in Germany last year went up by seven percent to 2.8 million units, according to the Federal Motor Transport Authority.

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