Europe's embattled auto sector plans plant closures and layoffs

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Europe's embattled auto sector plans plant closures and layoffs

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Europe's embattled auto sector plans plant closures and layoffs

_{//automotive-transportation.news-articles.net/co .. uto-sector-plans-plant-closures-and-layoffs.html}
^{Published in Automotive and Transportation on Monday, December 2nd 2024 at 4:01 GMT by Aaron Neefham}

A slew of automotive companies have recently announced plant closures and big layoffs in Europe as they struggle with weak demand, high production costs, competition from Chinese rivals and slower-than-expected electric vehicle transition.

Europe's automotive industry is facing significant challenges, leading to a series of plant closures and layoffs in 2024. Major car manufacturers like Stellantis, Ford, and Volkswagen are implementing cost-cutting measures due to declining demand for traditional combustion engine vehicles, the shift towards electric vehicles (EVs), and economic pressures including inflation and supply chain disruptions. Stellantis has announced the closure of its gearbox plant in Austria, affecting 300 jobs, and is considering further cuts in Italy. Ford plans to reduce its workforce in Europe by around 3,800 jobs, primarily in product development and administrative roles, as it transitions to electric vehicles. Volkswagen is also restructuring, with potential job cuts at its Zwickau plant, which is dedicated to EV production. These moves reflect a broader industry trend towards downsizing and reallocating resources to adapt to the electric vehicle market, amidst a backdrop of economic uncertainty and regulatory changes promoting greener transportation.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/autos-transportation/europes-embattled-auto-sector-plans-plant-closures-layoffs-2024-12-02/ ]

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