German auto parts giant forces Sheffield plant shutdown as electric cars take over

In a major industry shake-up Schaeffler — the Bavaria-based auto parts maker — announced its gonna close its Sheffield facility impacting around 200 workers (subject to staff discussions)

The plant which makes clutches for regular cars and farm-equipment faces shut-down due to rising electric-vehicle popularity; automatic transmissions are now the go-to choice. Matthias Zink who heads Schaefflers power-train division said theyʼll work on fair solutions with Sheffield staff

The UK car industry which gives jobs to almost 200k people is seeing more changes:

• Stellantis plans to close its Luton van plant affecting 1100 workers
• Company shifts focus to Ellesmere Port for e-van production
• VW prepares to close 3 plants in Germany — first-ever domestic shutdowns

The German company which already closed two UK sites back in 2018 now plans to move clutch-making to India and Hungary: this is part of their bigger plan to cut 4700 jobs across Europe. European car market isnt doing great with e-vehicle sales down 5% this year; new car sign-ups staying flat

We are mindful of the consequences of these measures

The company points to tough market conditions and global competition as reasons for its latest moves — about 2800 German workers will also lose their jobs. The UKs zero-emission vehicle rules which punish companies for selling too many gas-powered cars are pushing more changes in the industry