Germany’s Bosch is cutting 5,000 jobs due to the car industry crisis. Other German manufacturers like ZF, Continental, and Webasto have also announced layoffs. The European Union has increased tariffs on Chinese-imported electric vehicles, further exacerbating the crisis.
Industry-Wide Crisis
The crisis in the car industry is not limited to Bosch alone. Other German manufacturers such as ZF, Continental, and Webasto have also announced layoffs. Volkswagen (VW) has planned wide-reaching plant closures and layoffs to reduce labor costs due to difficulties breaking into the competitive electric vehicle market.
Tariff Increase
The European Union has increased tariffs on Chinese-imported electric vehicles to as much as 45.3%, further exacerbating the crisis in the car industry.
Worker Resistance
Workers’ representatives have urged VW to strike a deal and threatened potential industrial action starting in December if talks fall through.
Background
Job Cuts
Reasons for Job Cuts
The company cited the need to reduce costs sustainably and strengthen competitiveness as reasons for the job cuts. Bosch also pointed out that manufacturers require significantly fewer parts to make electric vehicles, making the process less labor-intensive.
The European Union’s increase of tariffs on Chinese-imported electric vehicles to as much as 45.3% has contributed to the market stagnation.
Bosch’s CEO stated that “we must adapt our structures to the changing market environment and reduce costs sustainably to strengthen our competitiveness.” The head of the workers’ council for Bosch’s automotive division in Germany, Frank Sell, has criticized the planned layoffs as a “slap in the face” and vowed resistance to the move.
