Volkswagen restructuring: Swiss suppliers expected to avoid the worst

Swiss suppliers to the automotive industry are expected to pass largely unscathed through Volkswagen’s sweeping restructuring. Feintool, however, stands out as the company most vulnerable to the German giant’s workforce cuts.

The Bern-based company, headquartered in Lyss, makes components for vehicle propulsion and seats, as well as parts for electric motors and batteries. Torsten Sauter, an analyst at Kepler Cheuvreux, told AWP that Feintool ranks among the most exposed suppliers because it depends more directly than others on European auto production volumes.

Autoneum appears less dependent on Volkswagen. Arben Hasanaj of Vontobel estimated that the Winterthur-based supplier derives only 5% to 7% of its business from the group. SFS, specialty chemicals maker Ems-Chemie and wiring-machine manufacturer Komax are also not expected to feel a major impact from the restructuring.

Volkswagen’s supervisory board unanimously approved the “Future Plan 2030” on Thursday. The plan adds around 50,000 job cuts worldwide by the end of the decade to the 50,000 already decided in Germany since 2024, mainly at Volkswagen. The total reaches 100,000 positions, or about 15% of the company’s global workforce.

Swiss suppliers have prepared for weakness in the European industry by restructuring and seeking new markets, particularly in China, Hasanaj said. Komax could even benefit if Volkswagen increases automation. Walter Bamert of Zurich Cantonal Bank said the plan would not automatically reduce vehicle production, as Volkswagen intends to close some sites while strengthening capacity at others. Other manufacturers could also replace Volkswagen volumes if they decline. Around midday, Feintool shares had fallen 3.2%, while the other sector stocks showed little reaction.

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Feintool ranks among the most exposed because it depends most directly on production volumes in the European automotive industry.