The brewing battle between Europe and China over the automotive industry has hit Polish soil, leaving thousands of workers in its wake. As European automakers struggle to defend their flagship industry, they face mounting pressure not only from China but also from looming trade tensions with the United States. So far, Europe appears to be losing ground, with layoffs initiated by automotive giants such as Volkswagen rippling across the continent and into Poland.
Poland’s automotive industry, a key player in Europe’s supply chain, is bracing for significant job losses this year. Experts predict around 10,000 layoffs in 2024, representing a stark 5% reduction in the sector’s workforce of 200,000 people. “The situation is dramatic,” said Jakub Faryś, president of the Polish Automotive Industry Association (PZPM).
Volkswagen and other industry leaders have already begun shedding jobs at an alarming rate. This wave of layoffs doesn’t just affect car manufacturers but also the extensive network of suppliers and subcontractors tied to the industry.
Adding to the uncertainty is the potential for trade conflicts with the United States. Former U.S. President Donald Trump has repeatedly threatened to impose tariffs on European goods, a move that could exacerbate the industry’s challenges.
“By now, we’ve received reports of 7,000 job cuts in Poland’s automotive sector for 2024, and the numbers keep rising,” Faryś noted. “Unfortunately, we are likely to end the year with around 10,000 layoffs.”
The situation reflects broader issues within Europe’s automotive sector, which has struggled to compete with Chinese manufacturers, particularly in the electric vehicle (EV) market. Chinese firms have rapidly gained market share with competitively priced, technologically advanced EVs. European automakers, meanwhile, are grappling with the transition to greener technologies while contending with economic headwinds.
For Poland, a country heavily reliant on its role in the automotive supply chain, the impact is especially pronounced. As Europe fights to maintain its standing in the global car market, the ripple effects are being felt by Polish workers and businesses, underscoring the far-reaching consequences of the evolving automotive landscape.
Whether Europe can reclaim its position and protect its workers remains uncertain, but one thing is clear: the automotive war is no longer confined to boardrooms and showrooms—it is now a battle fought on factory floors.