In the automotive world, not a day goes by without an appearance. news about plant closures and job cuts. The latest to join the ranks of companies taking radical decisions to combat the industry crisis is ValeoFrench components giant undergoing a painful restructuring.
According to some reports, Valeo seems to intend close two production sites ea cut more than 1000 jobs as a response to changing conditions of the automotive market and a decrease in demand for automotive components.
As for layoffs, 900 layoffs will affect French workers, and about 200 will be identified in divisions of the Czech Republic, Germany and Poland. Most of the laid-off employees will be part of the administrative and support staff, but Valeo is also targeting around 200 production workers who will be offeredvoluntary retirement with severance pay.
As already mentioned, restructuring of Valeo it also involves the closure of some manufacturing plants. The two plants to be decommissioned are located in France. This research and development center near Paris and one plant in the eastern part of Sarthe where components for hybrid vehicles are produced.
Employees at the Paris site will be offered transfers to a larger center in the same region, while workers at the Sarthe plant will be transferred to Reims in eastern France. The third site, near Lyon, has been identified by Valeo for decommissioning or sale, but at least for now it will remain active, albeit with reduced staff.
A Valeo representative spoke about the restructuring, explaining the following:
The automotive industry is in transition and sales are not meeting our expectations. We needed to analyze our manufacturing base.
It should be remembered that Valeo has has already lowered its sales forecasts twice annually as the European automaker suffers from weak domestic demand and strong Chinese competition abroad.
In this difficult context, the French company joins Bosch, ZF, Nissan, Volkswagen and many other groups that have recently announced a reduction in their turnover with the closure of factories and the reduction of parts of the workforce.
Source: HD Motori
Ashley Fitzgerald is an accomplished journalist in the field of technology. She currently works as a writer at 24 news breaker. With a deep understanding of the latest technology developments, Ashley’s writing provides readers with insightful analysis and unique perspectives on the industry.