“The competition is getting tougher, the headwinds are getting stronger,” Bernhard Mattes, president of industry association VDA, told reporters. The association expects global car sales to fall by 4.1 million to 80.1 million vehicles this year, driven by a slump in China, he said.
“Capacity utilization has declined, limited-term employment contracts are not being renewed, and the instrument of short-time work is being employed once again,” Mattes said. This meant that the number of permanent staff at car factories was likely to fall further. Germany’s largest car supplier Robert Bosch Group said last month it plans to slash 1,600 jobs in Germany over the next two year in areas related to combustion engine technology.
The US market for light vehicles is seen shrinking by 3 per cent to 16.5 million next year while car sales in China are expected to go down by 2 per cent to 20.5 million, VDA said.