Automotive supplier Forvia is implementing a profitability scheme that could impact 10,000 jobs in Europe as it aims to become cost-competitive with overseas players moving into the region.
The firm hopes the EU Forward scheme will last from 2024 to 2028 and add €75mn ($81mn) to the firm’s bottom line.
As well as consolidating its workforce, the scheme will see the firm adapt the Group’s manufacturing and R&D operations to the “fast-changing European environment”.
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Forvia makes seats, dashboards and interiors for both EVs and ICE vehicles, with EVs representing 46pc of orders in 2023. The firm is concerned that low-cost overseas suppliers will follow the likes of BYD into the European EV market.
“We need to get prepared to an evolution of the OEM landscape with the arrival of newcomers from Asia,” says CEO Patrick Koller on the firm’s full year 2023 results. “We also have to take into account the ICE ban in 2035.”
“It is a temporary situation as the CAFE regulation will impose a CO2 reduction of 15pc in 2025,” says Koller “I'm pretty convinced that we will see a recovery in 2025.”
However the vast majority of Forvia’s BEV segment sales are made in Asia and China, where the firm does not expect any slowdown.
Tom is an experienced business writer, specialised in the energy transition
Tom is passionate about Electric Vehicles and how Tesla, BYD, Rivian, Lucid and others are transforming automotive
