![\"Volkswagen](\"https:\/\/www.europesays.com\/ch\/wp-content\/uploads\/2026\/07\/4530f693178143811b98b8df6a3263026260ec80-91768533.jpg\")
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Volkswagen crisis hits Switzerland too <\/p>\n
Keystone-SDA <\/p>\n
The closure of a Swiss factory that manufactures precision components shows that the crisis in the German car industry is also having an impact in Switzerland.\n<\/p>\n
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July 20, 2026 – 10:26\n<\/p>\n
The St Gallen-based industrial group SFS has decided to close its plant in Flawil by the end of 2027, resulting in the loss of 110 jobs. The decision took the staff by surprise, according to a report in the Sunday paper NZZ am Sonntag. <\/p>\n
SFS manufactures precision components at the site for German cars, for which production is falling. Volkswagen, in particular, is facing a slump in demand in China, overcapacity in Europe and an uncertain strategy regarding electric vehicles. According to media reports, it may have to cut up to 120,000 jobs.<\/p>\n
The repercussions for the Swiss market are significant. According to a study by the Swiss Centre for Automotive Research at the University of Zurich, the Swiss automotive supply industry employed around 32,000 people in 2023. <\/p>\n
However, the institute\u2019s director, Anja Schulze, estimates that the figure has already fallen since then, emphasising that \u201cmany suppliers have had extremely difficult years\u201d. The main problem is clear: fewer cars produced mean less demand for components. But it is the car manufacturers who are suffering the most, as their business depends on setting up new production lines.<\/p>\n
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Swiss high-tech suppliers drive auto industry <\/p>\n
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Mar 7, 2012 <\/p>\n
But as they stroll through the packed halls and ogle at the glitzy selection of new models, few will probably be aware that Swiss technology is packed away under the shiny bodywork. \u201cSwitzerland doesn\u2019t produce complete cars. Parts manufactured by Swiss suppliers are concealed within the system and are therefore less visible,\u201d Anja Schulze, head\u2026 <\/p>\n
<\/p>\n Read more: Swiss high-tech suppliers drive auto industry Swiss suppliers, however, are not only struggling with falling volumes but also with shrinking margins. \u201cAs German car manufacturers have been earning less and less, they have sought to secure better terms from suppliers,\u201d Martin Hirzel, president of the Swissmem industry association, told the NZZ am Sonntag. <\/p>\n Despite the gloomy outlook, Hirzel nevertheless sees Volkswagen\u2019s restructuring \u2013 which he describes as \u201clong overdue\u201d \u2013 as a potential opportunity. <\/p>\n If German manufacturers manage to return to profitability, they could once again pay more appropriate prices for components. \u201cIn recent years, we have helped to fund Volkswagen\u2019s inefficiencies,\u201d Hirzel argues.<\/p>\n \n More<\/p>\n More <\/p>\n Dieselgate: Swiss car owner becomes first to win compensation <\/p>\n This content was published on <\/p>\n Aug 4, 2023 <\/p>\n A Swiss Volkswagen customer won an appeal court case against car dealer AMAG, obtaining a compensation of CHF18,000 ($20,572). <\/p>\n <\/p>\n Read more: Dieselgate: Swiss car owner becomes first to win compensation + How we produce English news<\/a> Articles in this story <\/p>\n","protected":false},"excerpt":{"rendered":"Volkswagen crisis hits Switzerland too Keystone-SDA The closure of a Swiss factory that manufactures precision components shows that…\n","protected":false},"author":2,"featured_media":105492,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[4],"tags":[101,564,114,100,566,6337,103,41,17,2726],"class_list":["post-105491","post","type-post","status-publish","format-standard","has-post-thumbnail","category-switzerland","tag-article","tag-beat-global-trade","tag-business","tag-latest-news","tag-multinationals","tag-process-industry","tag-production-type-deepl-autotranslation","tag-swiss","tag-switzerland","tag-transport"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116951542097547384","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/105491","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=105491"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/105491\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/105492"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=105491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=105491"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=105491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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Translated from Italian, reviewed by an\u00a0English Department<\/a> journalist.\u00a0<\/p>\n