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German auto parts giant Robert Bosch will reduce working hours—and consequently pay—for 450 employees in Germany starting March 2024, citing the challenging economic environment. Details of the Adjustment Effective Date: From March 1, 2024 , affected employees with 38-40 hour weekly contracts will shift to 35 hours per week. Locations Impacted: Primarily in Stuttgart and Gerlingen. Broader Industry Struggles Bosch Chairman Stefan Hartung recently stated that further job cuts beyond the 7,000 announced layoffs could not be ruled out. The auto industry , which is central to Germany's economy, faces significant headwinds, including: Volkswagen’s Cost-Cutting Efforts: Europe’s largest carmaker is pushing for a 10% pay cut to manage costs, protect profit margins, and counter competition from cheap Chinese imports . Declining Demand: Slowing European car sales exacerbate pressures on the industry. Takeaway: The reductions at Bosch underscore the growing challenges in Germany’s a...

Bosch CEO Stefan Hartung anticipates minimal growth in the global car and commercial vehicle markets this year and next, attributing the sluggish demand to factors lower than the industry predicted five years ago. " Demand on the car market globally is lower than the industry expected five years ago," Hartung said during the IAA Transportation trade fair in Hanover, Germany. He mentioned that Europe is projected to produce several million fewer cars than anticipated five years ago, and he expects it will take a few years for demand to recover. European carmakers are currently grappling with high labor and energy costs, compounded by increasing competition from lower-cost Asian rivals. For example, Volkswagen , Europe's largest carmaker by sales, recently stated that it is considering shutting some plants in Germany for the first time in its history as part of a cost-cutting strategy to stay competitive against Asian competitors. Hartung also noted a slowdown in the g...