he European automotive sector is going through a dark period, which risks getting worse in the coming years. The news of the day concerns Bosch, the world's largest supplier of auto parts, which has announced 5,500 layoffs worldwide, including 3,800 in Germany. This drastic reduction in personnel is a clear sign of the enormous difficulties that both the automotive industry and the entire production chain are experiencing.
Bosch’s reduction in staff employed in the production of automated driving and steering systems is part of a deep crisis that is affecting many other companies in the sector. IG Metall, the phone number library powerful German metalworkers’ union, has described this moment as a real “cyclone” for European industry. But what is behind this crisis and what are its broader consequences?
The automotive industry is traditionally one of the sectors that generates the most jobs in Europe, directly employing over 13.8 million people and representing around 6.1% of the total European workforce. However, today this sector is under pressure due to a lethal combination of factors:
Traditional car sales decline: According to the European Automobile Manufacturers' Association (ACEA) , new car sales in Europe fell by 26% between 2019 and 2023. Even in 2024, despite a slight recovery, the market is expected to remain below pre-pandemic levels. European consumers are delaying the purchase of new vehicles, both due to economic uncertainty and the wait for more affordable electric models.
Transition to electric: In order to reduce CO2 emissions and comply with European climate regulations, the automotive industry is rapidly shifting towards the production of electric vehicles. However, the demand for electric cars is not yet offsetting the collapse in sales of internal combustion vehicles. In addition, the production of electric cars requires fewer components and less labor, further exacerbating the employment crisis.