The car industry could expect a “wave of redundancies” in the new year with multiple suppliers at risk, experts have warned. Industry journal Automotive News Europe stressed that “mounting pressure on suppliers” is likely to trigger job losses in 2026.
The report suggested falling car sales, and the impact of tariffs and high interest rates could be a concern for the industry across Europe and the USA. Meanwhile, firms are also battling serious competition from cost-efficient Chinese manufacturers, which offer models at more competitive prices.
The Automotive News industry journal read: “Declining global vehicle production and falling supplier orders, especially for combustion engine parts, mean many suppliers, notably smaller Tier 3 and Tier 4 players, risk insolvency or at least cash flow stress in 2026.”
It comes after a wave of job cuts in recent months, with the German car industry taking one of the biggest hits. Major parts manufacturer Bosch announced it was cutting 22,000 jobs across their German mobility division.
Meanwhile, chassis and safety tech firm ZF Friedrichshafen expects to cut 14,000 jobs by the end of the decade. The US has also had its issues with a major car parts manufacturer announcing job losses just before Christmas.
Just before the holidays, Cooper Standard filed a formal notice with the state of Ohio stating plans to close its plant. The move is expected to result in 228 job losses despite being a major part of the local economy for five decades.
It’s not just manufacturing that is taking a hit, with major car brands also feeling the sting. Last month, carmaker Ineos confirmed there would be job losses due to the company struggling with debt.
Jim Ratcliffe’s firm will make hundreds of job cuts across its 1,700 global workforce. It’s expected that “several hundred” head office staff across multiple locations would be affected, including some positions based in the UK.
Earlier in the summer, sports car maker Lotus confirmed plans to cut 550 jobs in the UK. Lotus claimed the move was “necessary in order to secure a sustainable future for the company”.