Forvia CEO warns of automotive supplier consolidation and 10,000 job cuts

Martin Fischer, CEO of the automotive supplier Forvia, has warned of a massive global consolidation within the automotive supply industry due to the ongoing crisis in the European automotive sector. Fischer noted that small and medium-sized suppliers are increasingly facing existential threats, which poses risks to supply chain stability.

As part of a major corporate restructuring, Forvia plans to cut up to 10,000 jobs across various business areas and functions in Europe. In Germany, the restructuring will primarily impact the former Hella business, as premium technologies like LED headlights have transitioned into standardized mass-market goods.

To improve profitability and reduce debt by one billion euros, Forvia intends to sell its interior division. The company is shifting its focus toward growth areas such as vehicle seats and the electronics division, Hella Electronics. Fischer also expressed support for Volkswagen’s decision to drastically reduce its global model range.