Germany's car industry faces fresh cuts as Schaeffler axes 3,460 jobs and eyes defense

An employee moves an internal combustion engine (ICE) removed from a vehicle on a semi-industrial dismantling line of Volkswagen AG's first circular economy hub at their plant in Zwickau, Germany, on Wednesday, Oct. 28, 2026. Bloomberg | Bloomberg | Getty ImagesCar parts maker Schaeffler said Tuesday it would cut 3,460 jobs and shutter five of its sites across Europe, as Germany's once-dominant autos sector continues to struggle against economic headwinds, overseas competition and technological change.Approximately 2,660 of the jobs and four of the five sites affected are in Germany, including Schaeffler's plants in Dortmund and Morbach, which manufacture products for internal combustion engines. Operations will also be discontinued at its Berlin and Schwalbach sites, and toolmaking will cease at Höchstadt. Capacity will be adjusted in Haguenau and Toulouse, France, as well as Skalica and Kysuce in Slovakia. Including earlier programs and 1,800 signed partial-retirement agreements, Schaeffler says about 18% of its German core workforce will be reduced by 2028. The company forecasts a roughly 300 million euros ($336 million) annual boost to earnings from 2030 as a result. Schaeffler...