By David Sachs
Forvia said on Monday that it plans to cut costs and up to 10,000 jobs to adapt to Europe’s electric-vehicle transition and increase competitiveness on the continent.
The French car-parts supplier said the five-year restructuring should lead to savings of about 500 million euros ($538.9 million) a year from 2028 onward.
The need to adapt to the EU’s evolving climate policies, which are on a path to phasing out gas-burning vehicles, is a key reason for Forvia’s plan, the company said. It needs to remain competitive amid car-sale volumes in the continent that still trail pre-pandemic levels and adapt to a changing customer landscape, including the expansion of Asian electric-car makers into Europe, a spokesman said.
Improving profitability in Europe and reducing reliance on China are other drivers for the restructuring, according to the company.
Job cuts are part of the plan along with attrition through retirement, for example, and the elimination of nonpermanent roles, the spokesman said, adding that Forvia is in the process of specifying where in the company workforce changes will occur. The restructuring could affect around 13% of the workforce, the company said.
Costs associated with the program will total around EUR1.2 billion, Forvia said.
Also on Monday, Anglo American Platinum, a car-industry supplier, said a restructuring could affect 4,300 jobs as it deals with lower prices, rising costs and an uncertain outlook. Last week, German auto-parts maker Continental said it would cut around 7,150 jobs.
Write to David Sachs at [email protected]
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