Roland Berger expects 75.000 layoffs in automotive sector

The automotive industry will lose more than 75.000 jobs in the next few years. That is concluded by strategy consulting firm Roland Berger in a market study on the future of the car industry. Their calculations show that in the next three to four years, 10% of jobs at Western European automotive suppliers will be become redundant. There are currently around 750.000 people employed in the Western European automotive supplier industry.

Automobile business in big crisis

The automotive industry in Europe is experiencing in the biggest crisis since 1993. According to Roland Berger, this will have major implications for employment at car suppliers. "The main cause of the impending wave of layoffs is the almost historically low level of production of cars in Europe", says Marcus Berret, automotive expert at Roland Berger. In addition, jobs are also threatened by the increasing transfer of production to low-wage countries, and improvements in manufacturing by suppliers.

Another study from the University of Hasselt, shows the strong dependence of employment between the car manufacturers and the suppliers. Calculations of the university show that the shutdown of example, the Ford factory in Genk will cost 4.337 direct jobs and another 5.927 jobs at suppliers throughout Flanders.

Overcapacity

The consulting firm observes overcapacity of 8 to 10 percent at the suppliers. This could increase to 15 percent if the companies do not take adequate measures over the coming years. There are not only jobs at risk in the production departments at suppliers, but also in the research and development department and the administration, the consultants warn.