But what happens to suppliers of automotive products? After recent announcements of job cuts at Bosch, the German leader in the sector, the company will announce a second wave, while French equipment maker Valeo plans to do the same.

Bosch has announced its plan to remove approx 1,200 jobs in the department of embedded electronic systems, as part of a delicate transition to electric mobility. These workforce reductions are planned until 2026 and affect 950 jobs in Germany, particularly in the development, sales and administration of vehicle-integrated software.

For what reasons?

The relevant division plays a crucial role in the creation of more autonomous vehicles, requiring sophisticated software to meet the growing needs of the sector. However, Bosch claims that weak economy and high inflationmainly due to energy and raw material costs, slowed the technological transition, resulting in higher costs than expected.

In December last year, Bosch already announced its intention to cut up to 1,500 jobs at two German plants specializing in the production of transmissions. According to the group, the unit is facing far greater challenges than expected and maintaining a “difficult balance between investment and spending discipline”.

France will not be spared

For its part, Valeo, a French automotive supplier, plans to cut 1,150 jobs worldwide, including 235 in France, mostly in management positions, according to information provided by company management and the group’s two unions. This decision was made after a reorganization project related to the merger of two divisions, PTS and THS, specializing in the production of parts for hybrid and electric vehicles.

The draft presented to the unions on Wednesday aims to regroup and reorganize these two activities into a single operational structure. Management says employees affected by these cuts will be supported throughout the process.

In France, where Valeo has 13,000 employees, the risky positions are mainly found on the Île-de-France sites of Sergi, Créteil and La Verriere, according to information provided by the CGT and FO unions. For the latter, this acceleration of the restructuring plan indicates a more than uncertain future for the French sites.

Valeo has already announced the elimination of 89 positions at its clutch plant in Amiens as part of an intensified transition to electrification. At the same time, the operation of the clutch for heat engines in this area must be transferred to Turkey.

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