The German auto giant and the world's largest supplier of automotive components informed its shareholders of the need to continue its cost-cutting policy. The company's general manager, Markus Forschner, warned of a long-term stagnation in German production.
Forschner stressed during the press conference that the company's restructuring is necessary and although it will initially involve “negative consequences,” it will lead to stability in the future. Unfortunately, the negative consequences in this case mean, among other things: mass layoffs.
Forschner did not specify how many of the group's 429,416 employees would be affected. All we know is that “all cuts will be proportional.” As German analysts point out, up to 1.5 thousand people may lose their jobs. Employees working in the driving department at factories in Feuerbach and Schweiberdingen. However, this information has not been confirmed in any way.
Meanwhile, Bosch said it will supply products to the first Chinese automakers in Europe over the next few years, adding that it is also working to increase production capacity in China, especially in the brake industry.
It is worth noting that Bosch is not the only automotive-related manufacturer that has recently announced the restriction of operations at its German factories. Michelin, Goodyear, ZF Friedrichshafe and Continental also suffer from similar problems.
Just a few years ago, German companies supplying components for combustion cars employed 310,000 people. According to recent estimates, it has now shrunk by about a third. Auto giants are changing their policies on a large scale and implementing far-reaching restructurings. Unfortunately, with changes come mass layoffs.
Poland is also affected by a wave of layoffs. Experts have no illusions.
There are many reasons. Experts point out that auto companies have to deal with high inflation rates, increases in energy prices, as well as the unstable situation in the raw materials market. At the same time, the development of electric mobility is not without importance. In the case of electric cars, there is no need to use many components typical of combustion cars, which means that the demand for components produced by companies such as Bosch is gradually decreasing. In light of the upcoming ban on registration of new combustion cars in the EU, more car companies are likely to be affected by layoffs.
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