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Forvia plans 10,000 job cuts in shift toward electric vehicles

By Nithya Bose in Business News, posted February 20, 2024

Forvia has announced 10,000 job cuts in response to the automotive industry's shift towards electric vehicles.

The auto parts supplier aims to save around 500 million euros ($540 million) annually from 2028.

The company plans to stay competitive amid the European Union's push for EVs, the decline in car sales across Europe, and the growing presence of Chinese EV manufacturers in the region.

The company is adjusting to the EU's aggressive climate agenda, which includes phasing out gasoline-powered vehicles.

With European car sales not yet recovering to pre-pandemic levels and the rise of Asian EV brands, Forvia is reshaping its strategy to maintain competitiveness.

The planned downsizing of about 13 percent of its workforce will occur through layoffs, natural attrition, and terminating contract roles.

Forvia, known for its automotive interiors and emissions control systems, claims its components are found in one of every two vehicles worldwide.

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The company's restructuring also aims to enhance European profitability and reduce its dependence on the Chinese market.

This move comes as the auto industry's shift to electric vehicles faces challenges.

It includes the cancellation of Renault's Ampere electric-car unit IPO and Volvo Car's decision to halt additional investment in Polestar's electric-car venture with Geely.

Other industry players, like Anglo American Platinum and German firm Continental, have also confirmed job losses.

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