Crisis in the EU automotive industry: Can the sector remain competitive in the context of the twin transitions?
Ippubblikat: 2 December 2025
This report assesses the impact of the green and digital transitions on the EU automotive sector in relation to employment, skills, work organisation and working conditions. It also examines the contribution of social dialogue to addressing these challenges. The report finds that, while employment in the automotive industry – covering manufacturing, sales and the aftermarket – increased by 12 % between 2011 and 2023, this masked job losses of over 7 % in the manufacturing and supplier sector between 2019 and 2023. In 2024 and early 2025, further restructuring was announced. Job losses in vehicle manufacturing were mainly concentrated in western Europe, while some automotive supply jobs moved to lower-cost countries outside the EU. Electrification and digitalisation are also creating shifts in skills profiles and requirements, particularly among highly skilled occupations.
Jekk jogħġbok innota li l-biċċa l-kbira tal-pubblikazzjonijiet tal-Eurofound huma disponibbli esklussivament bl-Ingliż u bħalissa mhumiex qed jiġu tradotti awtomatikament.
The automotive sector in the EU, employing 6 million workers directly and a further 6 million in related industries and services, has been core to European prosperity. However, rising competition from China and other parts of Asia, coupled with slower technological innovation, has led the European Commission’s 2026 work programme to reinforce its commitment to and support for the automotive sector.
While employment in the automotive industry rose by 12 % between 2011 and 2023, job losses accelerated, with manufacturing and suppliers shedding more than 7 % of jobs between 2019 and 2023. Redundancy announcements in 2024 and early 2025 accounted for around 106 000 jobs, while around one third of reported expansions came from Chinese companies in the EU.
Job losses have so far been particularly prevalent in countries hosting Europe’s largest car manufacturers, with structural decline in France and, since 2019, car manufacturers in Germany, Italy and, to a lesser extent, Spain. Central and eastern European countries and Sweden saw rising vehicle manufacturing employment until 2023, while Czechia, Hungary, Poland, Romania and, to a lesser extent, Slovakia experienced declines as production relocated to lower-wage countries outside the EU, such as in Africa and Asia.
Estimates of the future employment impacts of the twin transitions and other factors vary greatly – those focused on employment trends in original equipment manufacturers (OEMs) and suppliers tend to predict job losses, while those considering employment creation in charging infrastructure services and wider battery manufacturing usually estimate neutral or positive employment outcomes. Skills needs are shifting as software becomes more integral to vehicle design and function.
Trade union representation in the automotive sector is generally higher than the national and manufacturing averages, showing how company-level collective bargaining is so essential to navigating the challenges of the transition. Agreements focus on redeployment, early retirement and voluntary severance, while emphasising the need for internal and external collaboration on training and retraining.
Din it-taqsima tipprovdi informazzjoni dwar id-data li tinsab f'din il-pubblikazzjoni.
List of tables
Table 1: Number of enterprises and average enterprise size, EU-27, 2023
Table 2: Enterprise size and employment for automotive manufacturing, EU-27, 2023
Table 3: Enterprise size and employment of automotive dealerships, EU-27, 2023
Table 4: Employment in sales, maintenance and repair and aftermarket activities, by Member State, 2023 (thousands)
Table 5: Assessment of emerging and declining jobs in the automotive industry as a result of continued automation and digitalisation
Table 6: Examples of upskilling and retraining support for automotive sector workers
List of figures
Figure 1: Share of companies using industrial or service robots in automotive manufacturing and all sectors by Member State, 2022 (%)
Figure 2: Share of workers using various technologies in the automotive sector and other manufacturing (%)
Figure 3: Share of automotive value added in manufacturing value added by broad sector (upper panel) and by components of the automotive manufacturing sector (lower panel), by Member State, 2021 (%)
Figure 4: Employment in automotive manufacturing and sales and repair, EU-27, 2010 and 2023 (millions)
Figure 5: Employment in vehicle manufacturing OEMs (thousands) (upper panel) and share of total manufacturing employment (%) (lower panel) by Member State, 2011, 2019 and 2023
Figure 6: Employment in the supplier industry (thousands) (upper panel) and share of total manufacturing employment (%) (lower panel) by Member State, 2011, 2019 and 2023
Figure 7: Restructuring announcements in the EU’s vehicle manufacturing sector, 2019–2025
Figure 8: Gender distribution of the workforce in automotive manufacturing, EU-27, 2010–2023
Figure 9: Gender distribution of the workforce in sales, maintenance and repair and the aftermarket, EU-27, 2010–2023
Figure 10: Workforce age structure in automotive manufacturing, EU-27, 2010–2023 (%)
Figure 11: Workforce age structure in sales, maintenance and repair and the aftermarket, EU-27, 2010–2023 (%)
Figure 12: Share of employees aged 55 years or over in the total workforce of automotive manufacturing (upper panel) and share of employees aged 55 years or over in the total workforce of sales, maintenance and repair (lower panel), by Member State, 2011 and 2023 (%)
Figure 13: France’s share of assembly volumes at Renault and PSA plants in Europe (including Morocco but excluding Russia), 2007–2024 (%)
Figure 14: Estimated job losses in the French automotive industry, 2020, 2021, 2023 and the first nine months of 2024
Figure 15: Share of workers who received training paid for by their employer, by subsector, 2015 and 2024 (%)
Figure 16: Share of workers who received training on the job, by (sub)sector, 2010, 2015 and 2024 (%)
Figure 17: Share of workers who needed further training to cope well with their duties (left panel); share of workers whose skills corresponded well to their duties (centre panel) and share of workers who had the skills to cope with more demanding duties (right panel), in the automotive sector and other manufacturing sectors, 2010, 2015 and 2024 (%)
Figure 18: Perceived impact of technology on tasks by (sub)sector, EU-27 (%)
Figure 19: Exposure to OSH risks in the automotive sector (continuous lines) and the broader manufacturing sector (dashed lines), 2010, 2015 and 2024 (%)
Figure 20: Job insecurity – share of workers who believed that they were at risk of losing their job in the subsequent six months, 2010, 2015 and 2024 (%)
Figure 21: Union membership in the automotive and manufacturing (sub)sectors, EU-27, 2015 and 2024 (%)
Il-Eurofound jirrakkomanda li din il-pubblikazzjoni tiġi kkwotata kif ġej.
Eurofound (2025), Crisis in the EU automotive industry: Remaining competitive amid the twin transitions, Publications Office of the European Union, Luxembourg.
