The Stellantis factory in Tychy (formerly Fiat plant) is most affected by this trend. The plant where, among others, models with hybrid drives, such as Jeep Avenger or Fiat 600, plans to eliminate the third shift and lay off hundreds of employees. Decreasing demand for small cars and high production costs – related to, among others, with tightening emission standards – forcing producers to cut employment and reduce production to maintain price competitivenesswrites “Rzeczpospolita”.
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The decline in production in Polish factories is also due to the difficult economic situation in Europe, in particular in Germany – the main market for parts and vehicles manufactured in Poland – where orders are decreasing and demand is rebounding.as “Rzeczpospolita” writes.
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Parts and components are still available
Although the production of passenger cars is clearly declining, some sub-supply plants are doing slightly better – the parts and components segment remains at a more stable level. This is an important element of the local supply chain that can mitigate the effect of a general decline in production in the industry and partially cushion the negative effects on the labor market and exports, writes “Rz”.
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Industry challenges on the horizon
“Rzeczpospolita” points out that The collapse of production in Polish factories is related to several factors: falling demand for vehicles with classic drives, costs resulting from tightening ecological standards, as well as the need for transformation towards electromobility. The need to adapt production to new technological and ecological requirements poses serious challenges to the automotive industry that will affect its competitiveness in the coming years.
