By David Sachs
Forvia shares rose Monday after it said a reduction of up to 10,000 jobs would save about 500 million euros ($538.9 million) yearly from 2028 as the company adapts to EU electric-vehicle policies.
At 0838 GMT shares in the French car supplier were up 4.3% to EUR16.76 after rising as high as EUR17.02.
The company said the restructuring would trim as many as 10,000 jobs, or about 13% of its workforce, through job cuts, attrition and the elimination of contract positions.
Forvia said it needs to remain competitive as Europe phases out of gas-burning vehicles while car-sale volumes still trail pre-pandemic levels in Europe. The restructuring will also help it adapt to a changing client base as Chinese electric-car makers expand in Europe, Forvia said.
The company also reported 2023 results on Monday, with earnings before interest and taxes coming in around 4% below expectations, Citi analysts said in a note. Net cash flow was higher than expected, the analysts said.
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