The European automotive industry is going through tectonic upheavals that threaten to leave an indelible mark on the economic map of the Old Continent. The data is startling: in the last two years alone, the automotive component manufacturing sector has announced plans to lay off over 104,000 employees. The pace at which people are being forced to leave the factories is unprecedented – an average of 4,300 people are losing their livelihoods per month, which exceeds even the darkest statistical records from the era of the pandemic and the subsequent "famine" for semiconductors.
The situation is critical and many analysts are already talking about a “free fall“. Jakub Farish, head of one of the automotive industry associations, emphasizes that if we add the layoffs at the vehicle manufacturers themselves, the real number of those affected is probably chasing the psychological limit of 200,000 people. These are not just numbers on paper, but the equivalent of the elimination of 15 large-scale factories.
“We failed to stop the bleeding“, admits Benjamin Krieger of CLEPA with bitterness. The reasons for this collapse are complex, but at the center of the storm stands the “dragon in the room” - the massive invasion of Chinese brands. They are not only undercutting prices with aggressive offers, but are now offering quality and equipment that make the traditional European giants look clumsy and technologically backward.
The problems are also deepened by the fading enthusiasm for electric mobility. While politicians in Brussels were drawing up ambitious plans for a full decarbonization, the market has reacted with cold realism. Weak demand for expensive electric models has forced companies such as Audi, Mercedes and Volkswagen to review their strategies and begin painful restructuring. Suppliers such as Bosch, Continental and ZF Group, which are the backbone of the industry, have also been forced to close entire units.
The forecasts for the future are also not at all rosy. If Chinese companies manage to capture a sustainable share of more than 10% of the European market - a goal that seems increasingly close - this will mean a million fewer cars produced in EU factories. The chain reaction will hit everyone: from tire and seat manufacturers to glass factories. Saving the sector requires not only a technological leap, but also an urgent dialogue with the European Commission to balance environmental goals with the economic survival of the industry.