One of the world’s largest manufacturers of automotive components wants to speed up plans to reduce the workforce in Europe, reports Reuters, according to Agerpres, in the context of the analysts say that Europe seems to be heading for recession.
In Romania, the group Forvia there are five factories Faurecia the Tălmaciu, Craiova, Mioveni, Râmnicu Vâlcea, Cățeasca and five other design and development centers, one administrative center and three production units HEAL the Timisoara, Arad, Lugoj, Craiova, Oradea and Iasi.
Forvia, the world’s seventh largest auto parts maker, wants to cut more than 10,000 jobs in Europe over the next five years. The first 2,800 employees burnt until the end of this year.
The manufacturer supplies parts to automakers such as Stellantis and Volkswagen, which are currently dealing with strikes, possible plant closings and weak demand for electric cars.
On Friday, for the second time in the last three months, Forvia revised its annual sales and profit estimates, against the background of the challenges registered on the European and North American markets, as well delayed in China.
“Compared to the situation last year, we lost almost two million vehicles, and this figure could increase before the end of the year,” said CEO Patrick Koller at a conference with analysts, where the he was asked about the evolution of demand for cars around the world.
Analysts: Europe appears to be heading for recession
Europe appears headed for recession as its largest economies, Germany and France, grapple with domestic political and economic problems, reports CNBC.
Business activity in manufacturing and service industries in both countries – Europe’s largest and second largest economies, respectively – fell more than expected in September, data released on Monday showed.
In Germany, the HCOB composite purchasing managers’ index (PMI), which measures business activity in both regions, fell from 48.4 in August to 47.2 in September, a seven-month low and below expectations of 48, 2.
Meanwhile, in France, the composite PMI hit a low of 47.4 in September, down from 53.1 in August and below expectations of 50.6.
A level above 50 indicates expansion, and a level below this level suggests contraction.
For the euro zone as a whole, S&P Global, which compiles the data, said business activity in the single currency area fell in September for the first time in seven months, falling to 48.9 in September from 51 months earlier.
The PMI data – a close measure of economic activity in the region – are the latest figures to point to a sharp slowdown in Europe’s traditional growth drivers as Germany and France deal with turmoil political and economic uncertainty at home.
“The big fall in the euro area composite PMI shows that the economy is slowing, that Germany is in recession, and that the Olympic boost in France was small,” said Andrew Kenningham, chief economist for Europe at Capital Economics, in a survey on Monday.
The “sick man” of Europe
The recession in Germany is not new, the country’s once prosperous, export-based economy has been in recession for over a year.
Before the latest PMI data, economists expected the German economy to grow just 0.3% in 2024, according to the Bundesbank; the European Commission’s spring forecast was even more pessimistic, predicting just a 0.1% increase this year.
The latest PMI data in the country shows that “a technical recession seems to be brewing,” said Cyrus de la Rubia, chief economist at the Hamburg Commercial Bank (HCOB), in a survey on Monday.
It is expected that the German GDP for this quarter will decrease by 0.2% compared to the previous quarter.
“In the second quarter, the GDP has decreased by a rate of 0.1%. There is still hope for a better fourth quarter, as higher wages combined with lower inflation should boost not only real incomes but also consumption, supporting domestic demand ,” he said.
Once the paragon of growth in Europe, economists are comparing Germany to the “sick man” of Europe.
“The German economy is still struggling to move, raising concerns that the headwinds are structural rather than cyclical,” JP Morgan euro zone economist Greg Fuzesi said in a Friday note titled “German Patient Checkup.”
“It is certainly easy to list many challenges: China’s growth and competition, higher energy prices, the green transition, the transformation of the automotive sector, the aging population and the delay in investment in the public infrastructure, “he said, noting that there is also an opinion regarding the coalition government’s inability to deal with these challenges, “What puts pressure on trust”.
2024-09-28 05:16:11
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