Automotive suppliers announce factory closures and mass layoffs

The automotive and lighting sectors are facing significant workforce reductions due to corporate restructuring and financial instability.

Lear Corporation has announced plans to cease production at its facility in Gründau, Germany, by mid-2027. The move is expected to result in approximately 180 job losses, though about 120 engineering positions will remain. The company intends to shift manufacturing to Slovakia, Serbia, and Tunisia. The decision comes despite Lear reporting a 3% year-over-year revenue increase to $6.2 billion in the second quarter of 2026. Local unions, including IG Metall, have expressed opposition to the closure.

In Poland, Ultinon Motion Poland is preparing for mass layoffs following the bankruptcy of its parent company, First Brands Group. The factory in Pabianice, known locally for producing automotive lighting, will terminate the employment of 474 workers by the end of the year. The financial difficulties stem from the U.S.-based First Brands Group, which faced bankruptcy proceedings in late 2025 due to significant debt. This led to a lack of working capital for its European subsidiaries, causing liquidity issues despite a full order book.