A recent analysis by the European Automotive Suppliers Association (Clepa) for the Financial Times showed that more than 30,000 jobs were lost across the automotive industry in 2024. That's double the number in the previous year.
The hemorrhage is all the more worrying as the hemophilia sector seems incapable of stopping the flow of layoffs and site closures. 58,000 net job losses have been recorded in Europe since 2020.
A sector in agony
Recently, Valeo decided to close three of its French sites: two factories (on Isle d'Abeau in Isère and La Suze in Sarthe) but also the Verrières R&D center in Yvelines. Forvia announced last spring that it was cutting 10,000 jobs across Europe, under a « sureffective » regarding the activity of the group.
From the French tire manufacturer Michelin (closure of two factories in France) to Bosch, the world's largest supplier of automobile parts (5,500 job cuts planned, mainly in Germany), none of the major players is escaping the crisis. As for the little ones, they often have no choice but to be absorbed or go out of business.
Market at half mast
Sales of new vehicles by European manufacturers have steadily fallen, leaving supplies with excess capacity and little prospect of sales rebound. “If there is no more growth for European manufacturers, there is no more growth for their equipment manufacturers either” declares in the columns of the FT Alexandre Marian, director of the consulting firm Alixpartners. Enough to arouse the concern of employees (1.7 million) of the European Union.
In France alone, the sector risks losing “ half of its 57,000 jobs over the next 5 years due to falling vehicle sales volumes, the slowdown in electric vehicles and Chinese competition”, Jean-Louis Pech, president of the FIEV (Federation of Vehicle Equipment Industries), was alarmed on September 18. Due to a lack of outlets, those who invest do so beyond Europe. Particularly in China. The world's leading automobile manufacturer and undisputed leader in electric vehicles.
Quest for outlets and competitiveness
Especially since European prospects remain uncertain. “We want to remain loyal to our historic customers but we must look for growth elsewhere. We hardly expect significant growth in the European automotive sector over the next five years » explains Laurent Favre, CEO of the equipment manufacturer OPmobility.
Valeo, which also has numerous sites in China, points to a loss of competitiveness in Europe “by 25% in 4 years”. Particularly because of inflation in wages and energy costs, according to its boss Christophe Périllat. And to point out the limits of customs surcharges for vehicles imported from China. Not restrictive enough according to him. “What was decided by the European Commission was ultimately to protect the assembly plant, to force Chinese manufacturers to establish themselves in Europe. But with equipment coming from where? » he asks himself. When Chinese manufacturers release their first cars from European factories, Valeo, Forvia, Bosch and others could very well provide them with parts… developed and manufactured in China… Or elsewhere. India and its 1.4 billion inhabitants (30 cars per 1000 inhabitants compared to 800 in the USA) is the new El Dorado. The Indian government aims to market 30% electric vehicles by 2030, and 100% by 2047.
From mechanics to high-tech
It is no longer a question here, only of mechanical parts, but of new technologies highlighted at high-tech shows like Las Vegas. The value of a car today has more to do with software than hardware. Equipment manufacturers now sell embedded technology with high added value. And what could be better than doing it in a new market, in full development, where manufacturers, to use the words of Renault CEO, Luca de Meo, « are ten years ahead » and where tech-savvy customers see the car as a connected extension of their living room. And Europe in all this?
“Our estimate is that the little growth we can have on the European market will be absorbed by the growth of imports, particularly Chinese” declared to the Financial Times Marc Mortureux, general manager at Platform for the automobile and mobility sector (PFA). European economic sovereignty seems to be struggling.
