VW rearrangement: limited impact for Switzerland

Context

In brief

• Volkswagen will cut 100,000 jobs by 2030.
• Feintool loses over 3% on the Zurich stock exchange.
• Other Swiss suppliers remain minimally exposed.

Key facts

• What: Volkswagen restructuring.
• When: By 2030.
• Where: Switzerland.
• Who: Volkswagen, Feintool, SFS.
• Amount: 100,000 jobs.

The news arrived late Thursday evening: Volkswagen will cut 50,000 jobs, in addition to the 50,000 already announced in recent months. By 2030, the automotive giant will thus eliminate 100,000 jobs. A significant portion will be in Germany, where four production sites remain without employment guarantees beyond the 2031-2034 period.

The impact of this restructuring on the Swiss industrial sector will be limited, analysts indicate. But some signals have already emerged on Friday morning, when the Feintool stock lost over 3% on the Zurich stock exchange, indicating that investors consider the Bernese component manufacturer the most exposed supplier.

Torsten Sauter, an analyst at the independent European financial services firm Kepler-Cheuvreux, notes that the Lyss-based technology group is "the most exposed company because it depends relatively directly on the production volumes and utilization rate of the European automotive industry."

Impact on Feintool

The Volkswagen crisis also hits Switzerland. The St. Gallen-based industrial group SFS, which produces components for the German company, will close its Flawil plant and eliminate 110 jobs.

For other operators in the sector, the reading is different. According to Arben Hasanaj of Vontobel, Autoneum, a company specializing in acoustic insulation, depends on Volkswagen only to a limited extent: between 5 and 7%. A potential decline in Volkswagen production would not have significant consequences on the respective group balances for SFS, active in fastening components, EMS-Chemie, a producer of various materials, and Komax, a manufacturer of wiring machinery.

Even more blunt is the judgment of Walter Bamert, an analyst at the Zurich Cantonal Bank (ZKB), who speaks of "a storm in a teacup." Bamert points out that closing plants does not automatically mean a reduction in vehicles produced, as Volkswagen's goal would rather be to concentrate production in the remaining facilities, better utilizing their capacity. For suppliers, the analyst emphasizes, "produced volumes are more decisive than the number of plants or employees": a potential Volkswagen decline could therefore be compensated by the production of other manufacturers.

Operational details

Practical Analysis

The impact of Volkswagen's restructuring on Switzerland appears to be limited, but there are some practical implications to consider. The closure of the Flawil plant by SFS and the elimination of 110 jobs are clear signs of the immediate impact. However, most Swiss suppliers seem well-positioned to face this crisis.

Adjustment to the European Market

Vontobel also notes that Swiss suppliers have already adjusted to the weakness of the European market, restructuring and focusing more on China. Komax, in particular, could even benefit from Volkswagen's potential decision to invest more in automation to contain costs. In the long term, however, the pressure on the European sector remains strong: for Sauter, Volkswagen's difficulties highlight, beyond specific group issues, "the structural difficulties of the European automotive industry, characterized by high costs, weak demand, and increasing competition from China."

Production Concentration

Walter Bamert of ZKB emphasizes that Volkswagen's goal is to concentrate production in the remaining plants, better utilizing their capacity. This means that, despite the reduction in jobs, production volumes could remain stable or even increase. For suppliers, the volumes produced are more decisive than the number of plants or employees. A potential decline in Volkswagen could therefore be offset by the production of other manufacturers.

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Key points

Action: What to do in Switzerland

For Swiss workers and companies, it is important to closely monitor the decisions of Volkswagen and its suppliers. If you work in one of the affected industries, it may be helpful to look for retraining or transfer opportunities in other companies that are investing in automation and electric vehicle manufacturing.

# Job Opportunity Monitoring

The job market in Switzerland is dynamic and offers many opportunities for those willing to retrain. Check our calcolatore stipendio and comparatore CHF/EUR regularly to evaluate your options and make informed decisions.

Investments in Automation

Komax, for example, could benefit from a possible choice by Volkswagen to invest more in automation to keep costs down. If you work in a related field, it may be helpful to explore training and professional development opportunities in this field.

Conclusions

In summary, the reorganization of Volkswagen will have a limited impact on Switzerland, but it is important to be prepared and closely monitor the decisions of the main players in the sector. To learn more about the practical implications and actions to take, check out our calcolatore stipendio and comparatore CHF/EUR to evaluate your options and make informed decisions.

Source: rsi.ch