The Automotive Industry in Crisis: Thousands of Jobs at Risk in Europe
The automotive industry, a driving force of the global economy for decades, is facing an unprecedented crisis in Europe. As the sector struggles to reconcile tradition with the transition to electric vehicles, small and large suppliers are feeling the full force of the economic repercussions, threatening thousands of jobs and the stability of supply chains.
A Symbol of Industrial Resilience Falls
Gerhardi Kunststofftechnik, a German company founded in 1796, has withstood historical challenges such as World War I and II and the 1929 stock market crash. However, this specialist in plastic components for prestigious brands like Mercedes-Benz filed for bankruptcy in November 2024. The collapse of this iconic company reflects the deterioration of an entire ecosystem.
The Struggle of Small and Medium-Sized Enterprises
With 1,500 jobs lost, Gerhardi embodies the challenges faced by small and medium-sized enterprises, the backbone of the European automotive industry. Rising costs and declining demand have sealed their fate, despite their crucial role in production chains.
Hundreds of European Suppliers in Difficulty
According to a Bloomberg report, hundreds of European suppliers are in dire straits. The decline in traditional vehicle sales and delays in the mass adoption of electric vehicles are at the heart of this crisis. Among the most affected companies is French equipment manufacturer Forvia, a supplier to Volkswagen and Stellantis, which has cut thousands of jobs in response to the decline in orders for exhaust and transmission systems.
Even Electric Vehicle Focused Companies Are Struggling
Even companies focused on electric vehicles, such as Swedish battery manufacturer Northvolt, are experiencing setbacks. Northvolt has announced its insolvency in the United States, while 11 out of 16 battery production projects in Europe have been suspended or abandoned.
Job Losses Exceed Those of the Covid-19 Pandemic
In 2024, the European Association of Automotive Suppliers (Clepa) recorded the loss of 53,300 jobs in the sector, a figure that surpasses the losses incurred during the Covid-19 pandemic. Germany, Europe's economic engine, is particularly hard hit.
A Warning from the Industry
Matthias Zink, President of Clepa, stated: "Massive investments in electric vehicles, based on optimistic projections, have not yet borne fruit, exacerbating the financial situation of suppliers." According to projections, 20% of automotive suppliers could incur losses in 2025.
The Future of the Automotive Industry
If the transition to electric vehicles is unavoidable, the future of the automotive industry will depend on its ability to overcome this period of turmoil while preserving its essential actors. This crisis marks a historic turning point for a sector once synonymous with economic prosperity.
