European automotive suppliers are experiencing the most significant job losses since the coronavirus crisis, with nearly 86,000 positions cut since 2020 according to a study published by the European Association of Automotive Suppliers (CLEPA) on Tuesday.
Although initial forecasts had predicted that around 100,000 jobs would be created in the industry by 2025, CLEPA reports that there has in fact been a net loss of almost 56,000 positions.
The association puts this down to declining demand, rising production costs, and hesitation to invest in new technologies. CLEPA warns that the worst is yet to come for employment in the sector.
"These latest figures are a clear wake-up call," said Secretary General of CLEPA, Benjamin Krieger. "To safeguard jobs, accelerate the twin transition, and regain our global competitiveness, we need a regulatory recalibration [...] Without decisive action, Europe risks losing its leadership in the automotive sector."
Germany has been particularly affected with around 51,000 positions lost, accounting for 60% of the job losses among suppliers between 2020 and 2024.
Meanwhile in Belgium, 800 positions have been cut in the industry, CLEPA reports. Challenges within the auto industry have been highlighted by the uncertain future of Audi Brussels' plant in Forest.
CLEPA further notes that profits are currently insufficient to finance the essential investments needed for the ecological and digital transition of the sector in Europe. "This pressing situation demands urgent attention from policymakers to safeguard Europe’s automotive future and prevent further erosion of the industry’s competitiveness," the report concluded.
The European Association of Automotive Suppliers is a Brussels-based organisation which represents over 3,000 companies.
