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Valeo to Slash 868 Jobs Across French Plants
European Auto Slowdown Forces Deep Cuts
Valeo, a major supplier of automotive components, announced plans on Wednesday to carry out a significant restructuring plan that would result in eliminating 868 positions at eight of its French sites.
The French-based group expects 694 of these job cuts to be forced, with an additional 174 staff opting for voluntary departures. The company outlined closure plans for two sites in La Suze-sur-Sarthe and La Verrière (Yvelines). The majority of employees from these sites
would be offered positions at neighboring Valeo facilities in Sablé-sur-Sarthe and the Paris region, respectively.
highlighting the impact of shrinking production across the European and French automobile sectors.
are considered.
In addition to the closures, the L’Isle-d’Abeau (Isère) site, initially slated for closure, will downsize, shifting from 308 employees to just 70. This factory, which once specialized in producing starters,
had been gradually transitioning towards manufacturing hybrid systems, consisting of an electric motor partnered with its electronic
management system.
The restructuring also impacts sites in Sainte-Florine (Haute-Loire), Reims (Marne), Laval (Mayenne), Amiens (Somme), and Limoges (Haute-Vienne).
The company anticipates an additional 200 job losses in Germany, the Czech Republic, and Poland are also on the table, according to a spokesperson. Valeo emphasized that these decisions are part of a protracted plan, and a definitive timetable and alternative solutions will be handled with workers.
The company explained that
These job cuts are “generally linked to the slowdown of the European and French automobile markets,” he underlined. “French automobile production has declined considerably over the past decade. We had not yet made any adjustments. There comes a time when you need to do it.” The group “worked to have a plan that protects production operators”, who are not affected by forced departures, added the spokesperson.
“This is a dramatic announcement,” declared Bertrand Bellanger from Force Ouvrière. “While reducing costs might be essential, sacrificing jobs and weakening France’s future in this sector is a strategic error,” he emphasized.
. “The automobile industry is undergoing a major transformation. We need to safeguard the jobs of automotive
workers.”
This announcement follows a report published by Valeo in January indicating their intention to consider a global reduction of 1,150 positions. This figure encompassed 235 positions in France, with
limits on job losses in the liberal arts
and upper management roles out of their global workforce total of 109,900.
Longer-term, Valeo already anticipated not meeting their projected target of 21.6 billion euros in revenue for 2024, slightly revising it downwards by 3.2% amidst the ongoing shift toward electric vehicles and uncertain global economic conditions, especially the impact of the war in Ukraine.
Valeo expressed concern about the influx of Chinese competitors who,
while facing tariff barriers that protect European manufacturers, are putting pressure on specialized equipmentmakers
like Valeo as vehicle production moves to reshape the automotive industry’s landscape worldwide. Valeo’s production infrastructure is extensive with numerous sites in China catering to local automotive demand.
How is the shift towards electric vehicles impacting traditional automotive suppliers like Valeo?
## Interview with an Expert on Valeo Job Cuts
**Host:** Joining us today to discuss the recent announcement of job cuts by automotive supplier Valeo is Alex Reed, an expert on the automotive industry and its labor market. Welcome to the show.
**Alex Reed:** Thank you for having me.
**Host:** Valeo announced plans to cut 868 jobs across eight of its French plants. This news comes amidst a broader slowdown in the European auto industry. Can you shed some light on the factors driving these cuts?
**Alex Reed:** Absolutely. The European auto sector is facing a perfect storm of challenges right now. We have slowing demand due to economic uncertainties, rising inflation, and increased competition from electric vehicle manufacturers. This has led to a decrease in production across the board, putting pressure on suppliers like Valeo to adjust their workforce and operations.
**[1]**
**Host:** Valeo has stated that these cuts are part of a longer-term restructuring plan. What are some of the specific challenges Valeo might be facing that necessitate such drastic measures?
**Alex Reed:** Valeo, like many auto suppliers, has invested heavily in technologies for electric and hybrid vehicles. However, the transition to electric mobility is happening faster than expected, leaving some traditional automotive suppliers struggling to adapt. They might be restructuring to streamline production, focus resources on new technologies, and potentially consolidate facilities to improve efficiency.
**Host:** The union representing Valeo workers has expressed concerns about the potential impact of these cuts, suggesting the number of job losses could be even higher. What are the implications for workers and the communities affected by these closures?
**Alex Reed:** This is a very difficult situation for the affected workers and their families. Job losses on this scale can have ripple effects throughout local communities. These include economic hardship, potential strain on social services, and a sense of uncertainty about the future. It’s crucial that Valeo, the government, and unions work together to support affected workers through retraining programs, severance packages, and assisting them in finding new employment opportunities.
**Host:**
Valeo has also indicated job cuts in Germany, the Czech Republic, and Poland. Does this reflect a broader trend in the auto industry across Europe?
**Alex Reed:** Unfortunately, yes. The challenges facing Valeo are not unique. We are seeing similar restructuring and job cuts across the European automotive sector as manufacturers grapple with the evolving market landscape and the shift towards electric vehicles.
**Host:** This is certainly a complex and concerning situation. Alex Reed, thank you for sharing your insights on this important issue.
