Car sector experiencing a downturn - Bosch and Ford announcing further job reductions
The German automotive industry is currently grappling with a challenging situation, as both major automakers and their suppliers face job cuts and cost-saving measures. The industry's difficulties are not limited to the major players. Countless suppliers, often overlooked in the public eye, are also feeling the impact. One such company is Bosch, a prominent supplier in the automotive industry, which is facing an annual deficit of around 2.5 billion euros due to increasing competition and weak sales. To counteract this, Bosch is implementing cost-saving measures across all aspects of its operations, including materials, logistics, investments, and jobs. The mobility division of Bosch, in particular, is facing significant financial challenges. In an effort to ensure profitability, Bosch is restructuring in Germany, cutting jobs and reducing production costs. Bosch is not alone in these efforts. Several other companies in Germany have announced additional job cuts recently. Ford plans to cut up to 1,000 jobs in Cologne, while Dürr aims to reduce over 500 positions mainly in administration. Mahle is adjusting staffing due to a sales decline, and Bosch intends to cut over 1,000 jobs at Reutlingen by 2029, with the potential for up to 3,800 jobs to be cut overall in Germany by 2030. Continental, another major player, continues major reductions targeting thousands of jobs, including over 1,000 in Germany and plans to cut an additional 3,000 jobs by 2026. Even Elektrobit, a software subsidiary of Continental, plans to cut 480 jobs, 330 of them in Germany. Ford is also streamlining its business in Europe to catch up with its North American division. In response to lower-than-expected demand for electric cars, Ford is planning to cut an additional 1,000 jobs at its Cologne plant for electric vehicles and is reducing production at the plant from two production lines to one, starting in January. The European car market is stagnant, causing strain on the German automotive industry. The demand for electric cars in Europe is significantly below industry forecasts, according to Ford. This is a significant factor contributing to the difficulties faced by the industry. However, the industry is not standing still. The German automotive industry is simultaneously investing billions in new technologies. Despite the challenges, Bosch expects its mobility division to grow at a moderate pace this year, just under 2% adjusted for currency fluctuations, but below previous expectations. The European automotive industry is experiencing a difficult situation due to weak demand and high costs. As a result, job cuts at both major automakers and their suppliers are becoming a common occurrence. The industry is under immense pressure due to various factors, including increasing competition and weak sales. Nonetheless, it remains resilient, continuing to invest in the future while making necessary adjustments to navigate the current challenges.
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