Shifting trends in the worldwide auto industry heighten difficulties for logistics service providers

In the dynamic world of automotive manufacturing, 2024 saw a series of significant developments that have shaped the industry's landscape.

China has emerged as the world's leading vehicle exporter in 2025, following a year of robust growth in its domestic market. The country's exports have been reaching destinations across the globe, including Mexico, South America, the rest of Asia, and Europe.

Europe, however, has shifted from being a net exporter of vehicles to a net importer in the last few years. This shift has led to restructuring within European automotive companies. For instance, German automotive supplier Webasto has announced changes in response to market conditions. Similarly, Ford, General Motors, and Volkswagen have announced job cuts totaling over 20,000 across Europe.

Ford announced 4,000 job cuts in Europe in November 2024, while General Motors followed suit with nearly 1,000 job cuts around the same time. Volkswagen, in a more substantial move, announced plans to cut 35,000 jobs by 2030.

The declines in French, German, and Italian light vehicle sales were -3.7%, -0.4%, and -0.2% respectively in 2024. Conversely, growth in Spanish light vehicle sales was +5.1%, and the UK saw +2.6% growth.

Notably, some automakers have been shifting production out of Germany to plants in other countries, such as Mexico. Volkswagen, for example, has moved some production from its German plants to its Puebla plant in Mexico.

Meanwhile, in the US, light vehicle sales increased by 2.1% year on year in 2024. GM has been importing more vehicles to the US from South Korea to cater to this growing demand.

In a bid to stay competitive, the global automotive industry has also seen some consolidation in the logistics sector. DSV has acquired DB Schenker, a significant move in the logistics industry.

Amidst these changes, companies are seeking innovative solutions to overcome supply chain challenges. The upcoming Automotive Logistics livestream, open for OEMs and tier-one suppliers, aims to provide expert insights from industry thought leaders and offer actionable insights on overcoming these challenges. The livestream will also explore the growing trend of cost-cutting in detail.

In addition, merger talks are underway among automakers. Honda and Nissan are in discussions, as are Nissan, Honda, and Mitsubishi. These potential mergers could have far-reaching implications for the industry, with Nissan announcing 9,000 job cuts in December 2024 as part of its restructuring efforts.

The Volkswagen plant in Osnabrück, employing about 2,300 people, has production guaranteed only until the end of 2027. Its future is uncertain, with possible repurposing for military production by Rheinmetall, though no immediate closure was announced. Tesla’s factory in Grünheide is under workforce uncertainty amid declining European sales and unclear management communication, but no specific closure or job loss numbers have been announced recently.

The ae group, an auto supplier, announced the closure of its factories by the end of 2025, resulting in the loss of around 650 jobs. The company produces aluminum parts for engines, transmissions, chassis, and braking systems but faced insolvency due to market changes and increasing costs.

Despite these challenges, the global automotive industry experienced modest growth in light vehicle sales in 2024, with a 1.7% increase year on year. As the industry continues to evolve, it remains to be seen how these changes will shape the future of automotive manufacturing.

Shifting trends in the worldwide auto industry heighten difficulties for logistics service providers