Automotive Supplier Valeo to Shut Down Two Bavarian Sites, Hundreds of Jobs at Risk

The ongoing challenges in the automotive industry have resulted in significant restructuring for the French automotive supplier Valeo, with two of its sites in Bavaria facing closures and workforce reductions.

Valeo, a global manufacturer specializing in automotive components and systems, has confirmed the complete closure of its site in Bad Neustadt an der Saale. The decision was announced to the approximately 183 employees at the location, with at least 143 positions set to be eliminated. A further 40 employees have been offered the possibility to transfer to Valeo's facility in Erlangen, located about 140 kilometers away. The company stated that these numbers could still change as the process unfolds.

Historically, the Bad Neustadt facility employed over 500 people, but production activities had already ceased several years ago. In recent times, the remaining workforce was focused primarily on research and development functions. The closure marks the end of a site that once played a prominent role in Valeo's German operations.

Significant Reductions Also Affect Ebern Site

Alongside the closure in Bad Neustadt, Valeo has announced major cuts at its Ebern site in the Haßberge district. The company plans to eliminate 134 positions at this location, with the bulk--109 jobs--in research and development. The entire development department in Ebern is expected to close. Of these, 37 employees have been offered roles in Erlangen.

The Ebern facility has faced steady workforce reductions over recent years, having already lost nearly 1,000 jobs from a previous total of 1,650. The latest round of cuts adds to a broader trend of shrinking industrial employment in the region. Local representatives have expressed concern that, with the loss of its development department, Ebern's long-term future as a manufacturing site is in jeopardy.

Industry-Wide Pressures and Regional Impact

Valeo attributes its restructuring measures to the difficult market environment in the automotive sector, including increased global competition. The company's strategy involves consolidating research and development activities in larger, central locations, with Erlangen set to benefit from the transfer of expertise and personnel from other facilities. Valeo reports that, as of the end of 2024, it employs over 7,400 people across 18 sites in Germany, with a significant presence in Bavaria and Baden-Württemberg.

Local authorities and union representatives have voiced significant concerns about the impact of these decisions on workers and the broader regional economy. The mayor of Ebern and regional officials have emphasized the negative consequences for the local industrial base, warning that the loss of qualified jobs could diminish purchasing power and weaken the area's economic resilience.

Union representatives have pointed to longstanding challenges, noting that repeated calls for investment in new products--such as those related to electric mobility--have not been met. They have highlighted the dependency of some Bavarian sites on traditional combustion engine technology, which has become increasingly vulnerable amid industry shifts towards electrification and sustainability.

The automotive sector in the Main-Rhön region, including notable companies in Schweinfurt and Bad Neustadt, has struggled with ongoing job losses and restructuring. Several firms, citing difficult economic conditions and a downturn in mobility-related orders, have implemented significant workforce reductions in recent years.

Authorities at the district and state level have called for coordinated efforts to support affected employees and to develop sustainable future prospects for the region. The continued reduction of industrial jobs in the automotive and mechanical engineering sectors is seen as a critical challenge requiring comprehensive policy and economic responses.