(Bloomberg) -- Valeo SA plans to cut about 1,000 jobs in Europe and close two plants in France, citing a gloomy outlook for the car industry and a loss of competitiveness in the region in the face of cheaper Chinese products.
The French car-parts maker plans 694 forced exits and 174 voluntary departures across eight sites in France, it said in response to Bloomberg questions, after Agence France-Presse reported on Wednesday that Valeo is shutting its La Suze-sur-Sarthe and La Verrière sites in the country.
About 200 jobs will also be slashed elsewhere in Europe, including in Poland, Germany and the Czech Republic, the company said. Valeo has 112,700 employees in 29 countries, including 13,500 in France.
The cuts come amid “a difficult context of massive and lasting declines in volumes and a massive loss of competitiveness in Europe,” the company said. It’s a decline “in the face of China’s production,” it said.
The moves are part of the company’s efforts to restructure its industrial base, while also ensuring Valeo maintains a presence in France “by securing the most robust sites in the face of international competition and by regrouping research and development,” it said.
Car sales in Europe are flatlining, leading manufacturers including Ford Motor Co., Volkswagen AG and Stellantis NV to push for cost cuts in response to muted demand. Automakers have struggled to grow sales in Europe as the transition to electric vehicles stumbles and a cost-of-living squeeze crimps budgets.
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