Bosch headquarters, photo: Bernd Weissbrod / AFP / Profimedia
The German Bosch car parts giant announced on Tuesday that it will reduce 1,100 jobs at a unit in southern Germany, in the latest blow to a difficult car industry, AFP reports.
German car producers have struggled in recent years to keep up with an increasing competition from Chinese competitors.
“The necessary discounts are not easy, but they are essential to ensure the future of the unit,” said Dirk Kress, director of the Bosch Electronics Division.
Bosch said in a statement that the volumes of sales of steering systems are in a decline, part of the slow passage to electric vehicles.
“The production of steering systems at the Reutlingen unit is no longer competitive,” Bosch said, adding that the location will now focus on the manufacture of semiconductors.
Personnel discounts will affect about 1 in 10 workers in the respective factory, including those on the assembly line, as well as those in the administrative functions, the company said.
Bosch did not specify whether personnel discounts will involve compulsory dismissals or they will rely on voluntary measures, such as early retirement.
Other suppliers in the automotive industry, Schaeffler and Continental, also dismissed the last year, while the Porsche sports car manufacturer warned their staff on a “serious situation” against the background of the demand in China.
Bosch himself announced in November last year 5,500 redundancies at the company level.
