The company, which supplies components to the VW Group (Volkswagen, Audi, Porsche, Seat, Škoda) and Stellantis (Citroën, Peugeot, DS Automobiles, Opel), among other major car brands, plans to close 2024 with its drop in income of 100 to 150 million euros and he already admits that layoffs could go ahead, the Eco writes an online newspaper. This fall is justified by the slowdown seen in the automotive sector.
Eco quotes Jorge Leitão, CEO of Simoldes, according to which “at this moment no layoff measures have been implemented yet, but”being considered and studied in case it becomes necessary“.
Simoldes employs more than 6,000 people and has only part-time workers. “Investments that were planned in Mexico and turkey will remain for the time being.
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Interview with Jorge Leitão, CEO of Simoldes: Navigating Challenges in the Automotive Supply Industry
Time.news Editor (TNE): Thank you for joining us, jorge. Simoldes is a significant supplier for major car brands, including the VW group and Stellantis. Can you share what’s been happening in the automotive sector that has impacted your company’s revenue?
Jorge Leitão (JL): thank you for having me. The automotive sector is currently experiencing a slowdown, which has considerably affected our operations. We are anticipating a drop in income of 100 to 150 million euros by the end of 2024. This decline is largely attributed to reduced demand from major automakers as they recalibrate their production levels amidst changing market conditions.
TNE: That’s quite a substantial forecast. With these financial challenges, have there been any layoffs at Simoldes?
JL: As of now, we have not implemented any layoff measures. However, we are considering and studying our options to ensure sustainability in case the situation worsens. We employ over 6,000 people, and while our focus is on retaining our workforce, we must remain realistic about the potential need for adjustments.
TNE: It must be difficult to manage such uncertainty. Considering the planned investments in Mexico and Turkey,how are those projects being affected by the current economic climate?
JL: For the time being,those investments will continue as planned. We believe that diversifying our operations globally is crucial for long-term growth and resilience, even during economic downturns. We are committed to ensuring that Simoldes remains a robust player in the automotive supply chain.
TNE: Considering these challenges, what advice would you give to other companies in the automotive supply sector?
JL: My advice would be to remain agile and adaptable. Companies shoudl assess their financial health regularly and be prepared to pivot quickly. Additionally, investing in innovation and maintaining open communication with partners and employees can definately help navigate these uncertain times effectively.
TNE: As we certainly know, economic conditions can shift rapidly. How do you envision the future of the automotive supply industry?
JL: The future will likely be a blend of challenges and opportunities. Businesses that embrace technological advancements and sustainable practices will be better positioned to thrive. The automotive industry is evolving, especially with the rise of electric vehicles and a push for greener solutions. Adapting to these changes will be vital.
TNE: Thank you, Jorge, for sharing your insights. It’s clear that the automotive sector is at a pivotal moment, and your perspective will help our readers understand the implications and prepare for the future.
JL: Thank you for the possibility to discuss these vital issues. Staying informed and proactive is essential for everyone involved in the industry.
