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Major European Auto Parts Manufacturer Forvia Cuts 10,000 Jobs
The major European car parts manufacturer Forvia feels the hot breath of Asian competitors on its neck and is therefore making significant cuts in its workforce. This should save costs and make the company more resilient.
Forvia, which was formed in 2022 from the French Faurecia and German Hella, will cut around 10,000 jobs over the next five years to save costs. The company wants to be able to compete better with its Asian rivals in the transition of the car market to electric driving. The group employed approximately 75,500 employees at the end of last year. The job reduction therefore amounts to approximately 13 percent of the workforce.
In addition to France and Germany, the company also has European branches in the Czech Republic, Poland, and Spain. “All locations will be affected, but not in the same way,” Forvia operations director Olivier Durand said. The job cuts, including changes to regional production and research and development spending, will save approximately €500 million annually by 2028, according to the company. Forvia is not the only company in the automotive sector that recently announced that it will cut many jobs. For example, the German tire and car parts manufacturer Continental announced last week that it would cut approximately 7,150 jobs at its car parts branch.
