Suppliers cut jobs, spending, and EV plans amid sluggish sales

North American auto suppliers, including Lear Corp., Dana, Magna, and BorgWarner, are reducing jobs and slashing engineering and R&D budgets to address weak vehicle sales and uncertainty around EV demand. Lear Corp. laid off 15,000 workers in 2024, with more cuts expected in 2025. The shift in focus has moved from heavy investment in EV parts to cost-saving measures such as automation and factory closures. The potential impact of U.S. tariffs on imports from Canada and Mexico, along with higher duties on steel and aluminum, could further affect vehicle demand. Dana aims to save $300 million by 2026 with a revised EV strategy, while Magna and BorgWarner are pursuing similar efficiency initiatives, including Magna’s $124 million cut in engineering costs in 2024. These moves come as suppliers face ongoing challenges like supply chain disruptions, the pandemic, and rising costs.