Future of the auto industry in danger: 450 jobs will be lost!

Future of the auto industry in danger: 450 jobs will be lost!

Luxembourg-based International Automotive Components (IAC) has announced it will close a plant in Michigan, resulting in the loss of 246 jobs. This decision is part of a broader strategy aimed at responding to the current declining order situation in the automotive industry. The closure is closely linked to Ford's planned factory conversion in Louisville, Kentucky, where the company wants to produce a fully electric pickup truck instead of two SUVs by 2027, as kunststoffweb.de reports.

The US automotive sector has come under pressure as demand for new vehicles, particularly SUVs, declines. Ford is investing a whopping $2 billion to transform its Louisville plant, a move that will fundamentally change production. The UAW union hopes that the IAC plant in Mendon can win another contract to secure jobs. In total, around 450 jobs are expected to be eliminated in the region by December 2025, as the automotive supplier Dana from Toledo, Ohio, is also planning job cuts.

Job cuts in Germany

In parallel to the developments in the USA, Ford and Bosch must also take drastic measures in Germany. Ford plans to cut around 1,000 jobs at its Cologne electric car factory to counteract weak demand. Bosch is also forced to announce cost savings as the company warns of a deficit of around 2.5 billion euros in its mobility division. In both cases, the challenges are compounded by a stagnating European car market and high production costs, as finanzmarktwelt.de reports.

Additionally, Volkswagen and Porsche have reduced their production capacities due to weak sales in China and US tariffs. Ford has also already made production cuts and workforce cuts in Europe, which only increases uncertainty in the industry. From January 2026, Ford will switch from two to one production lines at the Cologne plant, which could further aggravate the situation for employees.

General trends and outlook

These developments are symptomatic of the entire automotive industry, which is currently having to combat the challenges of a rapidly changing market landscape. Stagnant sales figures and rising input costs are forcing many electric vehicle manufacturers to rethink their strategies and operate more efficiently. Bosch has also begun extensive restructuring in Germany to ensure profitability in its Mobility division. The moderate growth forecast for this division falls short of expectations and contributes to uncertainty in the industry.

The coming months will be crucial to see how these trends continue to develop and what actions companies take to maintain their position in an increasingly competitive environment. For more information, see GitHub.