Work for Mercedes Vitoria: the company will cut 10,000 jobs – Norte Exprés

Forvia, ancient Forezia, which has a factory in Vitoriais about to begin a drastic adjustment of its activities in Europe With reduction of up to 10,000 jobs over five years from the current 75,500due to the fall automobile production in recent years and expected stagnation until 2030.

Forvia has a plant in Vitoria where it employs 140 people. lThe ancient “Faurecia Asientos del Norte”, dedicated, as the name suggests, sitting for vehicles.

This Subcontractor Mercedes-Benz with job stability since the agreement was signed for three years, from 2023 to 2025.

In its annual results report published this Monday, French manufacturer of auto components He explained that in order to “minimize the employment impact” between now and 2028 of this program called “EU-Forward”, he had taken a number of decisions to reduce the workforce.

In addition to taking advantage of the “natural” process not renewing the positions of those retiring or leaving the company would “immediately and dramatically reduce hiring.” in Europe, adapt the level of non-permanent employment and greatly reduce external resources for R&D” (research and development).

The justification for “EU-Forward” is that “The European car market will not offer volumetric dynamics in the coming years and remains clearly below 2019 levels.”

In particular, he recalled that between 2019 and 2023, car production in Europe fell by 16%, while in Asia it grew by 12%, and in addition, “the latest forecasts suggest almost zero growth in car production in Europe during the period from 2023 to 2030″, while in the rest of the world growth rates will increase by about 9% during this period.

For Forvia, the region formed by Europe, the Middle East and Africa (EMEA) has reduced its weight in the overall group activity from 50% in 2019 to 46% in 2023 in terms of sales.

The component manufacturer has a strong industrial presence in the Old Continent, especially in France, Spain, Germany, Great Britain, Poland, the Czech Republic and Romania.

In Spain, its main factories are located in Vigo, Valladolid, Tarazona (Zaragoza), Vitoria, Pamplona, ​​Abrera (Barcelona), Almussafes (Valencia) and Villaverde (Madrid).

The new project assumes an increase in restructuring costs by 50%, to approximately 1 billion euros, half of which will occur in 2024-2025 and the other half in 2026-2028.

As for the treasury, restructuring costs will also increase by 50% to approximately EUR 800 million, also in two equal installments in each of these periods.

Thanks to this adjustment, the company expects savings of around 500 million euros annually in 2028.

The financial target is to increase profitability to above 7% of turnover in Europe, up from 2.5% in 2023, and reduce EMEA’s share to 40% of sales in 2028 (down from 46% in 2023).

The EMEA region is expected to account for 35% of Forvia’s operating profit in 2028, up from just 22% in 2023.

Forvia made a profit of 222 million euros last year, compared with the 382 million loss it suffered in 2022.

Its operating result increased by 35.7% to EUR 1,439 million and turnover increased by 10.9% (14% on a like-for-like basis) to EUR 27,248 million. EFECOM