Research by the European automotive supplier association CLEPA suggests that around 86,000 jobs have been lost in the automotive supplier industry since 2020. Despite forecasts that more than 100,000 new jobs would be created by 2025, in reality there has been a net loss of almost 56,000 jobs. In the first six months of 2024 alone, a further 32,000 job cuts have been announced, surpassing the worst of the pandemic and making it clear that the biggest impact on employment is probably still ahead of us. These losses are due to falling demand, rising production costs and delayed investment in new technologies.
Profitability in the supply industry remains insufficient to support the critical investments needed for Europe’s green and digital transitions.
20% of the predicted jobs in the EV supply chain have actually been created. Only 29,000 jobs have been created since 2020, of which around 19,000 are related to electric vehicle technologies.
Although the trade surplus is showing signs of recovery, European suppliers are losing their competitive edge in global value creation. At the same time, dwindling capital inflows are slowing down progress in the transition.
Germany is the country most affected, accounting for 60% of total job losses, with almost 52,000 jobs expected to have been lost between 2020 and today. (jr)
