The problems with the Germans Car supplier are huge. Among other things, you get to feel the subdued car production, many works are not busy. At the same time, many companies have a lot of money in change E-mobility Invested – in many cases, this does not yet pay off. According to Constantin Gall, car expert at the consulting company EY, the suppliers suffer especially from the lower quantities. “These are fragments of what was planned,” says Gall. This does not only have to do with the low demand for electric cars. “In times like this, a vehicle purchase is not at the top of the list for many people.”
The product quality is also not the problem. The way to the end result is currently not competitive. “The big conglomerates have their love and need, because the complexity that they have in all of their structures is eaten up,” says Gall. In addition, the manufacturers are more added to themselves to load their works. According to Gall, companies have to slim down and concentrate on the areas that will drop money in the future.
The following overview shows what challenges the largest suppliers are facing:
Bosch: Almost 15,000 jobs fall away
The world’s largest car supplier Bosch makes the crisis a lot of trouble. In many areas, the company has come under pressure and, according to its own statements, has only partially competitive. Products such as control units, drives, steering, parts for electric cars and vehicle software as well as engineering services for car manufacturers are particularly affected.
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The reasons for the crisis are always somewhat different in the individual areas. The throttled vehicle production, postponed projects by the car manufacturers and the resulting overcapacity are generally a problem. In addition, there is an increasing competitive and price pressure- for example by Chinese providers.
The problem for Bosch: Even in the other parts of the company – which, among other things, offer heating, household appliances and power tools – is not going well. That is why there have been a number of austerity programs in the Group based in Gerlingen near Stuttgart since the end of 2023. Thousands of jobs are to be eliminated worldwide in the coming years. The announced job cuts now add up to almost 15,000 jobs, a large part of it in the supplier area in Germany. Working hours of thousands of employees have also been reduced. Bosch boss Stefan Hartung recently expected further incisions in view of the economic situation and change in the auto industry.
Continental: split and roll backwards
There are decisive weeks in front of Continental: On September 18, the group wants to split its weakening car delivery division and bring it to the stock exchange as a company. Conti boss Nikolai Setzer (54) speaks of the “most profound reorganization so far” in the company’s history. In this way, “new forces” should be released.
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It is like a roll backwards: Conti initially started with pony shoes and tires in 1871, at that time for carriages and bicycles. Later car tires were added. Through several takeover, the company grew to the third largest car supplier in the world. In 2021, Conti had already split off the Vitsco drive division. Now the group is becoming a pure tire manufacturer again. Because the Hanoverians also want to get rid of their plastic technology division.
Contis car delivery business has long been a problem child and has repeatedly written red numbers in recent years. Most recently, the largest group in sales had earned a little more. Sales dropped by 5 percent in the second quarter due to the stagnant car production, but more than profit got stuck. This was due to the cost reductions and price increases. In the largest group in sales, the austerity course was recently tightened again. More than 10,000 jobs are eliminated, around half each in the administration and in research and development.
On the offer, the new company Aumovio has brakes, chassis, vehicle electronics, infotainment solutions, sensors and components for assisted and automated driving. So far, the area has around 92,000 employees-almost half of the Continental employees. Sales were around 19.4 billion euros last year.
ZF Friedrichshafen: Zoff on Lake Constance
The Friedrichshafen gear factory – ZF for short – based on Lake Constance has been in crisis mode for years. Red numbers are expected again for this year. The approximately 50,700 employees in production and administration are worried about their jobs. Thousands of jobs will be at stake in the coming years. In addition to automatic and manual drives, ZF has, among other things, chassis components, steering systems, drives, brakes and safety technology.
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A sticking point in the realignment of the group is currently the division for drives – internally called “Division E”. It is not competitive. This area, which not only encompasses electrical, but also hybrid drives and combustion engines, suffers particularly from the delayed start-up of e-mobility as well as with high costs and low margins in the traditional gear business. Around one fifth ZF employee is working in the division worldwide. In 2024, almost a quarter of the total turnover was generated here. In the coming weeks, ZF and employee representatives want to negotiate the realignment of the troublesome nuclear division.
Schaeffler: 4700 jobs in Europe fall away
The car and industrial supplier Schaeffler There is comparatively well in the crisis – also because of its diversified business. On the advance is the business with electric drives for vehicles, as the company announced. In return, however, the business with conventional drive trains and chassis decreased in the first half of 2025.
Overall, the group survived comparatively well for the first six months despite the difficult economic situation. Sales decreased by 4.6 percent in the first six months in the previous year to around 11.9 billion euros. The profit before interest, taxes and special effects (EBIT) fell by 49 million euros to 482 million euros.
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The supplier is one of the largest companies worldwide in the industry. Like the others, however, he also wants to reduce staff. He announced the reduction of 4,700 jobs in Europe, including 2,800 in Germany.
Mahle: Future concepts for the locations
Once the supplier, also known as a “piston meal” based in Stuttgart, deservedly earned the business with the combustion engine. But the company has been rebuilt for years. Thermal management plays an important role in the strategy of the foundation company. These are the technologies for heating and cooling in vehicles. This is mainly with Electric cars An important topic.
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Because the business at Mahle is not going well, around 600 positions in Germany were dismantled in the past twelve months, as CEO Arnd Franz announced at the end of July. In Germany, the supplier has around 10,000 employees. The foundation company had concluded an agreement with the works council in August 2023, which excludes operational terminations in Germany by the end of 2025. In addition, future concepts for the individual locations should be developed.