Germany’s car industry has long been a global leader, setting standards for innovation and quality. But in recent years, it has faced mounting challenges that threaten its dominance.
Now, one of the industry’s largest suppliers, Bosch, is feeling the pressure.
Bosch has announced plans to cut between 8,000 and 10,000 jobs, citing financial difficulties in the automotive sector.
Frank Sell, chairman of Bosch’s works council, confirmed the news, warning that the layoffs could affect thousands of employees across Germany, according to Boosted.
The company employs 135,000 people in the country, making it a significant player in the economy.
A Cost Crisis
Falling car sales, the shift to electric vehicles, and increasing competition from Chinese manufacturers have created a tough environment for German automakers and their suppliers.
“German automakers are facing a severe cost crisis as competition grows and sales decline,” Sell explained.
Tensions are high at Bosch, and there is growing talk of strikes. Sell noted that workers might follow the example of Volkswagen employees, who recently used industrial action to push back against job cuts.
A strike at Bosch could disrupt production at a time when the company is already struggling.
Bosch has been making cuts throughout the year to remain competitive. In Denmark, the company recently shut down a 63-year-old parts business, leading to the loss of 77 jobs.
These decisions, though difficult, are seen by management as necessary steps to adapt to the changing market.
While German firms like Bosch and Volkswagen are tightening belts, Chinese companies like BYD are moving in the opposite direction.
BYD recently hired 200,000 workers in just three months to meet rising demand and plans to shift some production to Europe to avoid tariffs.
Other Chinese brands are also exploring ways to expand in the European market, increasing pressure on traditional automakers.
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