- Liverpool face Chelsea title test, Ten Hag fights to avoid sack
- Dodgers roll while Guardians fry Yankees in MLB playoff thriller
- Top Texas court stays execution of autistic man in 'shaken baby' case
- China posts slowest growth in over a year as property woes drag
- Asian markets swing as China economic growth slows
- Pogba's shadow looms over Juve as revitalised Lazio come to town
- 'Unbelievable' Raphinha leading Barca into tricky triple-header
- In-form Marmoush and Frankfurt hope to tackle history at wounded Leverkusen
- Britain's Lammy in China to 'challenge' Beijing on Russia support
- Manila's car counters help address 'world's worst traffic'
- British racing attendances falling behind, says Qatar Racing's manager
- Rain forces cancellation of opening practice for Australian MotoGP
- Dupont 'beyond surprise' for Toulouse's Kinghorn
- Drought forces Big Tech to rethink thirsty LatAm data centers
- Countries under pressure to fork out for nature at UN conference
- Biden, allies in Berlin to renew Gaza truce call after Hamas leader killed
- Guardians rally to fry Yankees in 10 innings in MLB playoff thriller
- World Bank president focused on job creation ahead of annual meetings
- World Bank chief says lender's climate goals likely safe under Trump
- Japan's core inflation rate slows in September
- Israel PM says killing of Hamas chief 'beginning of the end' of Gaza war
- King Charles set to arrive in Australia for landmark tour
- Nadal defeated by 'animal' Alcaraz in Saudi Arabia as career nears end
- US Supreme Court denies stay of execution to Texas man in 'shaken baby' case
- US charges Indian agent over alleged plot to kill Sikh separatist
- Musk stumps for Trump in key US swing state
- TikTok, Facebook approve ads with US election disinformation, study says
- Purdy and 49ers face Chiefs in Super Bowl rematch
- Kenya deputy president ousted in historic impeachment
- Israel military says Sinwar killed in firefight while tracked by drone
- One Direction members 'devastated' by Liam Payne's death
- Norris shrugs off Red Bull 'trick' of the trade at US Grand Prix
- Global stocks climb as ECB cuts rates and tech rebounds
- Chelsea, Lyon ease to wins in Women's Champions League
- China expected to post slowing growth as economic woes drag
- Yamasaki brings keirin world title home as Japan takes two track golds
- Netflix adds millions of subscribers but growth slows
- 'Deeply misguided' to wall US off with tariffs: Yellen
- Biden farewell visit to Berlin focused on Ukraine, Mideast wars
- EU leaders urge new laws to speed up migrant returns
- Sinwar killing a blow to Hamas but impact on war uncertain
- Mitzi Gaynor, star of 'South Pacific,' dies aged 93
- Trump says Zelensky 'should never have let' Ukraine war start
- Harris woos undecided voters as Trump riles critics over Ukraine
- Hayes turns focus to US women's World Cup goal
- Zelensky seeks EU, NATO backing for 'victory plan'
- Bosch stuns Australia as South Africa reach Women's T20 World Cup final
- What we know about One Direction star Liam Payne's death
- Nicotine pouches rise in popularity as US youth tobacco use hits 25-year-low
- Mendis clinches Sri Lanka series win over West Indies
SCS | 0.53% | 13.21 | $ | |
CMSD | -0.52% | 25.02 | $ | |
BCC | -3.38% | 142.2 | $ | |
CMSC | -0.52% | 24.79 | $ | |
RBGPF | 0.69% | 60.92 | $ | |
GSK | -0.64% | 38.96 | $ | |
RYCEF | 0.68% | 7.4 | $ | |
NGG | -1.41% | 67.19 | $ | |
RELX | 0.91% | 48.59 | $ | |
RIO | -1.32% | 65.09 | $ | |
BCE | 0.03% | 33.49 | $ | |
JRI | -0.15% | 13.15 | $ | |
VOD | -1.23% | 9.73 | $ | |
BP | 1.25% | 31.32 | $ | |
AZN | -0.37% | 78.02 | $ | |
BTI | -1.22% | 35.37 | $ |
Electric car woes force German supplier ZF to axe jobs
German car parts manufacturer ZF said Friday it would cut a fifth to a quarter of jobs in Germany as it struggled with the switch to electric vehicles and foreign competition.
"The number of employees in Germany is to be successively reduced by 11,000 to 14,000 from the current level of around 54,000 by 2028," ZF said in a statement.
The decision to significantly reduce the size of its domestic workforce was needed to "respond to the changes in the mobility sector, particularly in the field of electromobility", ZF said.
The move was "difficult but necessary", ZF chief executive Holger Klein said in a statement.
"The seriousness of the situation calls for decisive action to be able to adapt the company to the tougher market and competitive environment," Klein said.
Restructuring the auto supplier in Germany was needed to "strengthen our competitiveness and consolidate our position as one of the world's leading suppliers", Klein said.
Strong competition, cost pressures and weak demand for electric vehicles meant the restructuring would focus on ZF's electric motors division, the group said.
The emerging market, in which Chinese manufacturers have taken the lead, was "highly competitive", ZF said.
Building the motors for electric cars had "low margins" and the group was struggling to "cross-finance purely electric drives" from its efforts in conventional and hybrid vehicles, ZF said.
The switch to electric vehicles was eating away at demand for "transmissions for conventional and hybrid vehicles", an area where German suppliers have traditionally excelled, it said.
At the same time, "the current glaring weakness in demand for purely electric vehicles" meant ZF had been left with overcapacity in areas backed with high investments.
Despite the difficulties, "the future belongs to electromobility", CEO Klein said.
ZF would continue to "invest heavily in this area", he promised, but would have to explore cooperation with other firms in the area to remain competitive.
- 'Leaner' -
As part of the restructuring, the Friedrichhafen-based supplier said it would "increase its investments" in the areas of in-car technology, vehicle chassis, industrial tech and aftermarket services.
ZF's network in Germany would be made "leaner" after recent acquisitions had seen it gradually expand, the group said.
The ultimate extent of the job cuts would depend on "the further development of the markets", ZF said.
EU plans to outlaw the sale of new fossil fuel-powered cars from 2035, means some jobs in the industry will inevitably become redundant.
Meanwhile, Chinese manufacturers have grabbed the advantage in electric vehicles and are hauling in a growing share of the market.
The Chinese battery-maker CATL has grown in short order to become the world's third largest auto supplier.
The double shock delivered by the end of combustion engines and rising Chinese competition has piled pressure on European suppliers.
Besides ZF, parts makers like Bosch, Continental and Webasto have been among the companies in the sector to have announced job cuts.
I.Meyer--BTB