Volkswagen, Mercedes-Benz, and BMW. All of them have been forced to issue profit warnings recently. In Volkswagen's case, it may even become necessary to close factories – a radical decision that the car manufacturer has never been forced to take before.
Peter Bryntesson, CEO of FGK, refers to it as a "tsunami that is on its way".
The market doesn't really know where it's heading when it comes to electrification and combustion engines.
Worst for the small ones
FGK has around 300 member companies, from large giants like the car safety company Autoliv to smaller actors. The very largest, like those focused on heavy vehicle industry, are the least affected, according to Peter Bryntesson. The worse it is for the smaller ones – like those primarily focused on the passenger car industry.
It may happen that vehicle manufacturers start to take production in-house and let it take place within the company. It may affect us on the supplier side, it's something we don't see yet but that may come in 2025.
How is the situation for these companies?
Challenging, I would like to call it.
Germany's problem is also ours
Currently, however, no wave of layoffs is seen among the member companies.
They're holding on to people because it's so hard to find the right competence in the industry. But just that we're not as focused on the passenger car side is a difference compared to, for example, Germany. There, I believe there will be large layoffs and closures.
A weak development in Germany also risks spilling over.
It will affect us because it's the engine of European industry, says Peter Bryntesson.
