– The automotive industry today is having a tough time. Customer demand is quite weak, while at the same time there is a transition with a shift in technology – away from diesel and petrol and towards electric operation – and it eats up money for the companies, says Mikael Wickelgren, automotive expert and researcher in business economics at the University of Skövde.
On Friday, it became clear that the electric car manufacturer Polestar is reducing its global workforce by 15 percent and that a total of 450 people are being notified in Sweden, of which 250 are in Gothenburg. This can have wider effects, according to Mikael Wickelgren.
– Yes, these are not good signals. It is a sign that it is sluggish. That Polestar cuts down may have consequences for subcontractors who may also have to lay off staff, it cannot be ruled out.
Fewer newly registered cars
The number of newly registered cars decreased by 17.5 percent in December compared to the same month the year before, and the forecast for 2024 is also minus 17 percent for the entire year, according to the industry organization Mobility Sweden.
Expected reduction in electric car sales
Electric car sales slowed in 2023 and this year, electric car sales are expected to drop for the first time, from 39 to 35 percent.
– 2024 will probably not be the year when the market blooms – it is difficult to see with the uncertainties that exist, says Mikael Wickelgren.
The electric car investments at Polestar, the manufacturing at Volvo cars and the tours around Nevs in Trollhättan – how is the west Swedish passenger car manufacturing actually doing? See the vehicle expert’s list in the video.