A bumpy ride for EVs, autonomous vehicles throws workers out of jobs

Requests for comment from Aptiv went unanswered. On a recent earnings call, Chief Financial Officer Joe Massaro said the supplier was pursuing an increased margin in 2024. The company reported a net income of $2.909 billion in 2023, up more than four times the previous year's amount.

"These (cost reductions), as well as our continued focus on our overall cost structure and footprint, are necessary," he said, "as we expect to see continued labor and operating cost pressures, particularly in our Mexico operations over the coming years."

Competitor Continental AG has also made workforce reductions. The German supplier, which has its North American automotive headquarters in Auburn Hills, Michigan, disclosed measures in November to strengthen its competitiveness in the auto sector by reducing costs by $437 million (400 million euro) annually by 2025. The measures to trim business and administrative departments will affect around 5,400 jobs globally.

In February, Continental said by the end of 2025 it'll streamline its research and development, affecting about 1,750 jobs worldwide, including 380 at its software subsidiary Elektrobit, bringing Continental’s total affected jobs to more than 7,000. About 40% of the reductions will affect employees in Germany, Automotive News Europe reported.

On March 7, Continental noted in its earnings report it expects wages and salaries this year to rise to $547 million (500 million euro). Half of those costs are related to its automotive unit, which includes the business areas of architecture and networking, autonomous technology, user experience and software. The auto unit’s sales increased by 10.8% in 2023 from 2022, Continental reported Thursday.

Forvia, a French auto supplier formed in 2022 after Faurecia acquired Hella, recently announced a project to adapt operations, which could affect 10,000 jobs through 2028, partly through attrition. The company, which has its North American headquarters in Auburn Hills, is also planning to “immediately and drastically” reduce its European recruitment.

The world's seventh-largest auto supplier, which says its parts appear on close to half of vehicles produced globally, presented its "EU-Forward project" in February. It's expected to result in annual cost savings of about $547 million (500 million euro) in 2028 across its European operations.

The project is meant to help the company adapt to the “fast-changing environment,” which includes the 2035 ban on internal combustion engine vehicles in Europe and the increasing number of Asian competitors. Forvia also is seeking to improve its profitability in the region.

CEO Patrick Koller said on the company’s earnings call that Forvia needs “to get prepared” for the coming Asian automakers that “will not come alone.”

“They will also come with some of their traditional suppliers," he said. "We have to improve our competitiveness. And we have to secure our strong European positions."