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

Sheffield clutch factory faces closure as car industry moves towards electric future. German manufacturer Schaeffler plans to cut 200 local jobs while shifting production to India and Hungary

November 27 2024 , 03:06 PM  •  265 views

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

Matthias Zink‚ Schaeffler power-train chief

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