VW restructuring has limited impact on Swiss companies

VW’s restructuring has had a relatively limited impact on Swiss companies Keystone-SDA

Swiss suppliers to the automotive sector are expected, for the time being, to escape the worst of the major restructuring announced by the German giant Volkswagen.

The Bern-based manufacturer Feintool, however, could be more exposed than other companies.

The Lyss-based company – which manufactures, amongst other things, components for car powertrains and seats, as well as parts for electric motors and batteries – is among those most at risk.

The firm is the most directly dependent on production volumes in the European automotive industry, Torsten Sauter, an analyst at Kepler Cheuvreux, told the AWP news agency on Friday.

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His colleague at Vontobel, Arben Hasanaj, believes, however, that the Winterthur-based supplier Autoneum is only 5% to 7% dependent on VW.

SFS, a manufacturer of metal fastening solutions and assembly components, the speciality chemicals firm Ems-Chemie, and the wiring machinery manufacturer Komax are also unlikely to be significantly affected by the restructuring undertaken by VW.

On Thursday, the supervisory board of VW unanimously approved a historic restructuring plan, bringing the total number of job cuts over the next five years to a record 100,000, thereby avoiding – at least temporarily – a major confrontation with staff.

Further opportunities on horizon

The plan, dubbed “Plan for the Future 2030”, provides for the loss of around 50,000 further jobs worldwide by the end of the decade, in addition to the 50,000 already decided upon in Germany from 2024 onwards, mainly at VW.

In total, the announced or planned job cuts would thus amount to 100,000 jobs, representing around 15% of the company’s global workforce.

According to the Vontobel expert, Swiss suppliers have long been preparing for the weakness in the European industry by restructuring and diversifying their markets, particularly towards China. Komax could therefore even benefit from increased automation at VW.

According to Walter Bamert, an analyst at Zurich Cantonal Bank, this restructuring will not automatically lead to a fall in vehicle production. VW intends to close certain sites in order to boost capacity at other locations.

Competitors could also step in should volumes at the German carmaker nevertheless decline. Global car production is, in fact, stable, buoyed by the growth of the middle class in developing countries.

Apart from Feintool shares, which were down 3.2% around midday, other shares in the sector did not appear to be affected by this news. Autoneum (+0.6%) was in fact rising slightly, whilst Ems-Chemie (-0.2%) and Komax (-0.5%) were down, and SFS remained stable.

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Translated from French, reviewed by an English Department journalist.