Europe’s auto supplier industry faces big job losses – CLEPA

Core Insights - The European automotive supplier sector is experiencing significant job losses, with over 100,000 jobs lost in the past two years, indicating a structural reset that has not been adequately addressed by policy support [1][2] Job Losses and Creation - Job losses in the European automotive supply industry reached 104,000, with 54,000 in 2024 and an additional 50,000 announced for 2025 [1] - Only 7,000 new positions were created in 2025, highlighting a severe shortfall in job creation compared to the number of job losses [2] Policy and Regulatory Environment - The European Commission's recent Automotive Package is seen as a positive initial step, but further development is necessary to enhance flexibility and competitiveness without increasing complexity and costs [3] - The EU is urged to lower energy prices and reduce administrative burdens, along with targeted measures to maintain critical production capacities in the region [4] Industry Impact and Challenges - The automotive supply chain is under pressure, with over 100,000 individuals affected by job losses, equating to 140 families impacted daily [5] - Potential new tariffs on shipments to the US, including a threatened 10% additional import tariff, could further strain the European automotive industry [6][7] - Major companies with significant sales to the US, such as Mercedes, BMW, Volvo Cars, and Jaguar Land Rover, may see their profit margins negatively affected by these tariffs [8]