Lippstadt/Nanterre – In early October 2026, Forvia CEO Martin Fischer warned of further consolidation in the global automotive supplier industry. Weak demand in Europe, cost pressures, and growing competition from China are exacerbating the situation. Consequently, if a small specialized supplier fails, entire production lines at manufacturers can come to a standstill. At the same time, Forvia is continuing its own restructuring, which could affect up to 10,000 jobs across Europe by 2028.
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Forvia Accelerates Job Cuts
The EU-FORWARD program has been underway since 2024, so this does not represent a new announcement of job cuts. Forvia aims to align its European plants and its research and development operations with lower production volumes and the shift toward electrification. By the end of June 2026, the number of agreed departures had risen to approximately 7,300. The group had originally projected that up to 10,000 jobs would be affected by 2028.
At the same time, the restructuring is improving key performance indicators. Although revenue fell by 4.3 percent to €10.51 billion in the first half of 2026, the operating margin rose from 5.7 percent to 6.0 percent. Furthermore, the group plans to sell its interiors division to Apollo, thereby reducing its net debt by at least one billion euros.
Europe’s automotive suppliers continue to shed jobs
In the first half of 2026, Europe’s automotive suppliers announced a total of 18,900 job cuts. At the same time, only 5,440 new jobs were created. Furthermore, imports of Chinese components rose by 23 percent to five billion euros. According to the industry association CLEPA, nearly one in four supplier companies expected to post losses for 2026 as of the spring.
Fischer therefore sees significant risks to stable supply chains, particularly among small, specialized firms. At the same time, he welcomes Volkswagen’s plans to significantly reduce the number of model and equipment variants; higher production volumes for identical components could lower costs for suppliers. Forvia, meanwhile, anticipates growth primarily in the areas of electronics and seating systems.
China Shifts Value Creation Away from Europe
The group recently generated around five billion euros in revenue in China. According to Fischer, about 80 percent of new business there comes from Chinese manufacturers. He is therefore calling for stricter rules regarding local value creation in Europe. Otherwise, further shares of production—and the associated jobs—could migrate to Asia.
However, the potential loss of up to 10,000 jobs at Forvia does not represent a new downsizing plan scheduled for October 2026. What is new is Fischer’s open warning of further business failures and a shakeout of the supplier landscape. While Forvia is improving its profitability, Europe’s supplier industry continues to lose jobs and market share. Consequently, the problem now extends far beyond the restructuring of a single corporation.
Author: Blackout News
Sources: Merkur (03.10.26) – WirtschaftsWoche (01.10.26) – Clepa (16.09.26)