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German Auto Suppliers Push Through Deep Cuts as Continental Sets September Spinoff

Lower output plus costly electrification is squeezing margins, forcing suppliers to slash costs.

Overview

  • Industry analysts cite reduced car production, delayed OEM projects, underused plants and intensifying Chinese competition as key pressures on German suppliers.
  • Continental plans to list its auto-supplier arm Aumovio around September 18 and will eliminate more than 10,000 positions, mainly in administration and R&D, after years of losses in the unit.
  • Bosch has outlined almost 15,000 job cuts worldwide, with a large share in Germany, reduced working hours for thousands, and warnings from CEO Stefan Hartung of further belt‑tightening.
  • ZF Friedrichshafen expects another year in the red and is negotiating the reorientation of its partly uncompetitive drive-systems ‘Division E,’ leaving thousands of jobs at risk in the coming years.
  • Schaeffler will shed 4,700 roles in Europe, including 2,800 in Germany, while Mahle has cut about 600 jobs in the past year and maintains a no‑redundancies pact in Germany through end‑2025.