The construction sector's decline is largely attributed to a lack of new housing projects, which could have long-term implications for employment and economic stability in France.
Webasto's financial struggles highlight the interconnectedness of the automotive supply chain and the impact of global market fluctuations, particularly in China.
Both industries are calling for government intervention to mitigate job losses and stabilize their respective markets.
If government support is not provided, the construction industry in France may see a continued decline in employment, potentially exceeding the predicted job losses by 2026.
Webasto's restructuring efforts may lead to further job cuts, impacting its global workforce and potentially affecting the automotive supply chain in Europe.
The economic pressures faced by both sectors could lead to broader implications for the French and German economies, particularly in terms of unemployment rates and consumer confidence.
The construction industry in France is facing a significant downturn, with the French Building Federation (FFB) predicting a 6.6% decline in activity for 2024, primarily due to a halt in new housing projects. Without government support, the FFB warns that up to 100,000 jobs could be lost next year, following 30,000 job losses in 2023. Olivier Salleron, president of the FFB, expressed frustration over the lack of visibility for companies and the potential for a further decline in employment in the coming years. Meanwhile, the automotive supplier Webasto is also in crisis, facing financial difficulties with debts exceeding one billion euros and a loss of 195 million euros in 2023. The company is considering additional job cuts beyond the 1,600 already planned, as it struggles with weak sales and the collapse of its business in China. CEO Holger Engelmann has called for political support to address broader issues affecting the automotive industry, including energy policy and bureaucratic challenges.
