Suppliers suffer from electric car slump - job cuts loom

The weak demand for electric cars is increasingly becoming a problem for suppliers as well. In some cases, manufacturers are purchasing up to 50 percent fewer electric vehicle components than previously projected, according to a survey conducted by the consulting firm Horváth among 50 automotive suppliers, including 35 from Germany.

Job Cuts to Save Costs

This is putting pressure on the companies. To reduce costs, 60 percent of the surveyed suppliers in Germany are planning moderate job cuts.

"The economic situation has significantly deteriorated for many suppliers and is increasingly putting some companies in distress," says Frank Göller, Partner and Automotive Expert at Horváth. "The shift to modules and components for E-vehicles requires substantial investments, and many suppliers have seen significant losses in revenue and profits due to reduced demand."

Due to the tense situation, further mergers or acquisitions are to be expected among automotive suppliers.