German Auto Suppliers: Bosch, ZF, Conti Job Cuts — 2026-10-24

Top developments

Bosch spins off mobility division into four subsidiaries

Bosch is restructuring its German operations by spinning off its mobility division, along with central service areas, IT, and real estate, into four wholly owned subsidiaries. This move affects approximately 62,500 employees and is scheduled to take effect on August 1, 2027. The company aims to achieve greater operational flexibility and faster decision-making to compete with Asian rivals amid cost pressures.

Experts warn of "five plants too many" in Germany

Felix Mogge, a partner at consulting firm Roland Berger, stated that the German auto industry faces a "hard upheaval," arguing that the sector currently has "five plants too many." He predicts the industry will end up one-third smaller than at its peak, driven by structural changes and intense Chinese competition.

ZF employees vote on location bonus compromise

At ZF Friedrichshafen, employees recently concluded a vote regarding a compromise on non-tariff location bonuses at the headquarters. Management and the works council had reached an agreement in mid-September to resolve disputes over these bonuses, with the voting deadline passing on October 23.

Local view

Berliner Zeitung highlights that Bosch's restructuring is not just organizational cosmetics but a response to alarming profit pressure, noting that rating agencies and financial figures indicate little time for gradual changes. The outlet frames the spin-off as a potential prelude to a larger "sanierung" (restructuring/saving) process.

n-tv reports that Bosch's goal is to become faster and more flexible to compete with Asian rivals. While all areas except headquarters and research are being spun off, the company assures employees that their individual contracts will not change immediately, aiming to maintain stability during the transition.

ZDFheute notes that the auto crisis is hitting medium-sized suppliers (Mittelstand) particularly hard, with employment declining and insolvencies rising. A recent industry conference focused on finding solutions for these smaller firms that lack the resources of giants like Bosch or ZF.

Context & numbers

Production Volumes: According to the VDA (German Association of the Automotive Industry), passenger car production in Germany stood at 392,200 units in September 2026, showing no change compared to September 2025. However, year-to-date production is down 4% compared to the previous year, with 3.03 million cars manufactured.

Chinese Competition: A KPMG survey cited by Dr. Web indicates that nearly half of auto managers expect six Chinese manufacturers to be among the top ten global automakers by 2035. This projection underscores the long-term threat to German suppliers' market share.

Insolvency Risks: German supplier bankruptcies were forecast to rise by 30% in 2025 as companies struggle with structural issues and weak demand, a trend that continues to impact the supply chain landscape in 2026.

On the radar

• Volvo Job Cuts: Volvo plans to cut another 2,500 jobs as it adjusts to fading ambitions in the Chinese market, signaling broader European uncertainty.
• China's Export Push: Chinese automakers are increasingly targeting Europe as their primary growth market, with domestic demand contracting and exports rising, further squeezing European manufacturers.