Raw material shortages and rising costs: The price of essential raw materials for electric vehicle batteries, such as lithium and cobalt, has increased dramatically. This makes electric cars expensive to produce, with lower profit margins than traditional vehicles.
Bosch is not an isolated case. Other major automotive companies are also going through a similar crisis, with thousands of layoffs across Europe:
Volkswagen has announced that it will reduce its workforce by more than 10,000 by 2025, focusing on restructuring its internal combustion engine vehicle division. Here too, the transition to electric vehicles is forcing drastic changes, with cuts that will hit traditional factories in Germany the hardest.
Ford has planned to cut around 3,000 jobs in phone number library Europe by 2024 as it looks to restructure its operations to focus on greener models and technological innovation.
Renault has announced plans to cut 14,600 jobs globally, with downsizing in France and other key markets, as part of a €2 billion cost-cutting effort by 2025.
Tesla, the electric vehicle giant, surprised many by announcing around 10,000 layoffs in 2023. Even a progressive company like Tesla is not immune to the difficulties of the sector, with problems related to market saturation and high production costs.
Stellantis, the group formed by the merger of Fiat Chrysler and PSA, has announced plans to reorganize its workforce. By 2025, it expects to eliminate thousands of jobs at its factories in Europe as the group tries to respond to the challenges of the transition to electric mobility.
Declining Car Sales and the Social Impact
The automotive industry crisis is not only affecting companies, but is also having a devastating impact on workers. Job insecurity is now the norm: fixed-term contracts, outsourcing and continuous staff cuts are part of an increasingly worrying picture.