About 80,000 automotive jobs to go – new tech blamed

Automotive manufacturers are set to eliminate more than 80,000 jobs in coming years.

So says Bloomberg News, adding that this year is one of the worst for auto workers across the world amid shrinking demand and the shift in vehicle technology, with Daimler AG and Audi announcing almost 20,000 job cuts in the past week.

Although the cuts are concentrated in Germany, the US and the United Kingdom, faster-growing economies also seeing automakers scale back operations.

The German companies joined General Motors, Ford and Nissan in huge retrenchments begun during the past year.

“The industry is sputtering as trade tensions and tariffs raise costs and stifle investment, and as manufacturers reassess their workforce in an era of electrification, autonomous driving and ride-on-demand services,” Bloomberg News says.

It adds the global auto industry will produce 88.8 million cars and light trucks this year, an almost 6% drop from a year ago, according to researcher IHS Markit.

The decline is expected to continue next year, German auto-industry lobby VDA forecasting global deliveries of 78.9 million vehicles, the lowest since 2015.

China has experienced a vehicle sales slump as well, with job cuts also happening there.

More than 2000 jobs went at EV start-up NIO, for instance, losing about 20% of its workforce.

“The persistent slowdown in global markets will continue to dent automakers’ margins and earnings, which have already been hurt by increased R&D spending for autonomous-driving technology,” Bloomberg Intelligence analyst Gillian Davis says.

“Many automakers are now focused on cost-saving plans to prevent margin erosion.”