Supplier Bosch cuts jobs as diesel, petrol car demand dwindles

German car part supplier Bosch will cut around 2,600 jobs in the coming years because the demand for diesel and petrol cars is waning, according to a report by newsagency dpa run by a number of German media outlets. The company said earlier this week it would cut 1,600 jobs by 2021 in Feuerbach and Schwieberdingen, in the car-making state of Baden-Wuerttemberg, one of the wealthiest states governed by Germany’s only Green state premier. On Thursday, Bosch announced to cut a further 1,000 jobs in Schwäbisch Gmünd by 2022. “We have to act now in order to get competitive again and fit for the future with a far-reaching restructuring,” the head of Bosch’s Automotive Steering division, Christian Sobottka, said. Tagesschau.de said of Bosch’s 410,000 jobs globally, 50,000 were more or less linked to the diesel technology, which has become controversial due to the Volkswagen diesel cheating scandal and air pollution issues in many cities.

Germany’s cherished car industry has set out to shift from high-end combustion engines, its traditional strength, to electric cars, which are widely seen as more climate-friendly. This move together with the digitalisation of mobility, however, requires changes to the workforce and production processes with far-reaching implications for the many suppliers. Bosch has added jobs globally over the past few years to meet new demand from digitalisation and e-mobility. But overall, many experts say a digitalised electric mobility will mean fewer jobs in the sector in Germany. In September, automotive supplier Continental had announced to cut 20,000 of its 244,000 jobs globally, planning to shed 5,000 of those positions in Germany.