- Suppliers are suffering from a shortage of electric cars - job losses threaten
Weak demand for E-cars is increasingly becoming a problem for suppliers as well. Some manufacturers are reducing their orders for electric vehicle components by up to 50 percent, according to a survey by consulting firm Horváth among 50 automotive suppliers, including 35 from Germany. This puts companies under pressure. To cut costs, 60 percent of the German suppliers surveyed plan a moderate reduction in staff.
"The economic situation has deteriorated for many suppliers and is putting some companies in a tight spot," says Frank Göller, partner and automotive expert at Horváth. "The switch to modules and components for electric vehicles requires significant investments, and many suppliers are suffering heavy losses in sales and profits due to reduced demand." Given the tense situation, further mergers and acquisitions can be expected among automotive suppliers.
For the study, Horváth conducted interviews with industry leaders in the last quarter.
According to the Association of the German Automotive Industry (VDA), there were a total of 273,500 employees in the German automotive supply industry in 2023.
The challenging market conditions are particularly affecting suppliers in Germany. Despite the decline in orders, some German companies are still pushing forward with plans to invest in electrification.
