Uncertainty, restlessness and expectation. This is how the automotive sector defines the current situation that is being experienced in the face of the car sales declineespecially the electric ones, which are not quite emerging in the market.
This has led to manufacturing companies having to reduce production and, consequently, adopt measures that affect the workforce. In Spain, the situation is currently not as worrying as in other countries such as Germany, nor are drastic measures being widely applied to date as is happening in some automotive brands such as the announcement of the closure of Volkswagen plants.
However, this better starting point of the Spanish plants, due to their greater competitiveness which results in a better justification of business results, does not prevent them from uncertainty is felt in the sector and a certain fear of the next two years. A period that is key in the transition towards an electrified fleet of cars on the streets and highways.
In fact, some measures have already been taken and there have been some problems in the automobile sector in Aragon, which has nearly 300 companies and employs around 30,000 workers. The step that generates the most uncertainty is temporary employment regulation file (ERTE) announced by Stellantis at the Figueruelas plantin Zaragoza, which plans to begin applying next December 1 and until December 31, 2025. It is justified for organizational and productive reasons.
This measure, already announced to workers’ representatives, is proposed for 4,200 employees of the almost 5,000 who currently work in this factory in Zaragoza. Those who have a replacement contract are excluded, according to the first approaches.
The news has caused concern because previously this Stellantis plant had already announced the abolition of the night shift also as of December 1 due to the drop in production, largely caused by the fact that this factory has stopped assembling the Opel Crosland and the Citroën C3 Aircross. Now, it maintains the Opel Corsa, the Lancia Ypsilon and the Peugeot 208 in its portfolio.
Initially, this ERTE – management and unions will meet this Thursday, November 14 to begin negotiations – includes a maximum of 35 days in 2024-2025, with a maximum of 80 days of individual impact.
The announcement of this file is viewed with expectation in the rest of the sector due to the possible consequences it may have on the auxiliary and components industry. “The ERTE has not triggered other ERTEs, but we are waiting to see how the situation in the sector, which is very turbulent, reacts. We don’t know if more problems will come“says Sergio Sancho of FICA UGT Aragón, to theEconomist
Be that as it may, there are still two complicated years left, until approximately 2027 and until The STLA small platform for electric cars arrives at Stellantis Figueruelas –the company has a market share in Europe of 18% until August and 13% in electric-, for the new electric generation of the Opel Corsa and the Peugeot 208 and, it is expected, also for the DS3, although there is still no official formation.
Impact on the auxiliary sector
The consequences in the automotive sector of this ERE in Stellantis are currently difficult to calculate because many companies – the majority – no longer depend exclusively on production for the Stellentis plant in Figueruelas. They are multi-product, working for different manufacturing companies.
In addition, recently, there have also been other movements in the sector. On the one hand, the so-called construction companies in the automobile sector have internalized some productions of components and parts, thus ceasing to rely on external suppliers.
At the same time, another phenomenon is observed: choose low cost suppliers to make the electric car cheaper, producing movement towards those cheaper plants that are in other countries.
And, although the Stellantis ERTE has not generated an impact on the sector at the moment, the automotive industry has seen some problems recently. The most striking cases have been closures of the Airtex and Bosal plantsboth in Zaragoza, as well as the file of Faurecia.
Besides, Automotivein the Zaragoza town of Tauste, also recently presented a file with complaints about some 60 employees due to the loss of orders due to lower production of automotive manufacturers. However, in this case, CCOO Aragón considers that behind it there is a case of relocation of part of the production to Morocco. Precisely, in this company, negotiations will resume this Wednesday, November 13.
Causes of measures in the automotive industry
In general, new measures are expected in the sector due to the confluence of several factors. One of the main ones is the sales drop or the fact that purchases of electric cars are not picking up. The latest data for the month of October point to a decrease in registrations in the case of Aragon of 26.44%. A percentage that drops to 22.59% in the case of the drop in registrations from January to October of this year, according to Anfac, Faconauto and Ganvam.
This decrease is motivated by the lack of union between supply of electric cars and buyer interestwho do not fully see the advantage of an electric vehicle, mainly due to the autonomy and the lack of charging points as the objectives of forming this network for refueling have not been met.
However, it is not the only factor. The transition towards electric vehicles goes beyond the drop in sales in Europe. It also has to do with competitiveness and competition with other countries like China and their models. “We see sales declines generated by hasty policies because we are not equally competitive and we do not all have the same standards. Here the measures are more demanding. We agree on the transition, but it must be fair and not leave people out,” says Sergio Sancho.
Observe the situation
Given this context of transition and its possible impact in these two years, the Aragonese community has launched the Automotive Observatory in which there is the presence of the main social and economic agents such as the Automotive Cluster of Aragon, as well as the General Council of Aragon.
The objective is to analyze the situation and see the threats, apart from studying how to address them. For now, The first conclusions are expected at the end of this year. This document is to be delivered to the authorities and even sent to the Ministry of Industry.
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