Capacity is leaving Western Europe. Not everyone knows it yet.
When large players restructure, smaller suppliers absorb the pressure next…
Chinese supplier revenues grew 35% versus 23% in the EU, per CLEPA.
Half of European suppliers plan to cut production capacity within five years.
Only 10% expect to expand.
Michelin is considering 1,500 voluntary job cuts in France, representing 9% of its French workforce.
The gap is not closing. It is widening each year.
This is not about one company restructuring. It is about a cost base that EU suppliers can no longer match at current volumes.
Three questions worth your time:
If your largest customer cuts call-off volumes by 20%, does your cost structure still hold?
Are you winning RFQs on price, or on access?
Which of your platforms are also sourced from a lower-cost region?
The suppliers who survive this period will not be the largest. They will be the hardest to replace.
Are you currently looking at adjacent markets outside automotive to reduce your ICE exposure?
This is the shift we help Tier 1 and Tier 2 suppliers navigate.