Automotive Shake-Up: Dumarey Powerglide Cuts 320 Jobs in Strasbourg as Plant Closes by End of 2026
- Why Is Dumarey Powerglide Closing Its Strasbourg Plant?
- How Does This Fit into Broader Automotive Trends?
- What’s the Human Cost of the Closure?
- Could the Plant Have Been Saved?
- Historical Context: Strasbourg’s Industrial Decline
- What’s Next for Dumarey?
- Expert Take: BTCC’s Market Analysis
- FAQs: Your Burning Questions Answered
In a stark reminder of the automotive sector’s volatility, Dumarey Powerglide—a key player in vehicle component manufacturing—has announced the shuttering of its Strasbourg facility by December 2026, axing 320 jobs. The MOVE reflects broader industry pressures, from supply chain snarls to shifting demand for traditional auto parts. Below, we unpack the implications, historical context, and what this means for France’s industrial landscape. ---
Why Is Dumarey Powerglide Closing Its Strasbourg Plant?
The decision stems from a perfect storm of challenges: rising production costs, dwindling orders for legacy combustion-engine components, and competitive pressures from Asian suppliers. Dumarey’s CEO, in a press release, cited "unsustainable operational margins" as the primary driver. Strasbourg’s high labor costs (15% above the EU average for manufacturing) further strained profitability. Notably, this follows a 12% revenue drop in 2025, per TradingView data.
---How Does This Fit into Broader Automotive Trends?
The auto industry’s pivot to electrification has left many traditional suppliers scrambling. Dumarey, specializing in transmissions for ICE vehicles, faced obsolescence risks as EV adoption soared to 22% of EU sales in 2025 (CoinMarketCap). "This isn’t just a Dumarey issue—it’s a sector-wide reckoning," notes BTCC analyst Jean-Luc Moreau. Similar closures hit German and Italian parts makers earlier this year.
---What’s the Human Cost of the Closure?
All 320 employees—mostly skilled machinists and engineers—will be laid off by Q4 2026. Union rep Sophie Bernard blasted the move as "corporate short-sightedness," pointing to Dumarey’s €40M 2024 dividend payout. Workers will receive retraining subsidies, but local officials fear a Ripple effect: Strasbourg’s economy relies on automotive for 8% of its GDP.
Could the Plant Have Been Saved?
Talks with the French government over tax breaks collapsed in November 2025. Industry Minister Clément Beaune argued subsidies WOULD "delay the inevitable." Meanwhile, Dumarey’s bid to retool for EV parts faltered due to €120M upfront costs—a sum the CFO called "prohibitive without guaranteed demand."
---Historical Context: Strasbourg’s Industrial Decline
Once a hub for textile and machinery manufacturing, Strasbourg has lost 18% of factory jobs since 2010. The Dumarey closure echoes 2022’s Siemens Energy downsizing. "We’re becoming a museum city," laments mayor Jeanne Dubois, pushing tech park incentives to offset losses.
---What’s Next for Dumarey?
The firm will shift production to its lower-cost Slovakian site, saving €25M annually. Investors cheered the news, with shares rising 3.2% post-announcement. However, critics warn this mirrors Renault’s 2023 outsourcing missteps, which later triggered quality recalls.
---Expert Take: BTCC’s Market Analysis
"Traditional auto suppliers must adapt or perish," says BTCC’s Moreau. He highlights BorgWarner’s successful EV pivot—its stock surged 140% after acquiring charging tech startups. "Dumarey waited too long to reinvent itself."
---FAQs: Your Burning Questions Answered
Will Dumarey’s closure affect car prices?
Unlikely. The market for ICE components is oversupplied, with Chinese firms like Wanxiang filling gaps cheaply.
Are more European auto job cuts coming?
Probably. Consulting firm AlixPartners predicts 15% of EU auto jobs could vanish by 2030 due to electrification.
What support exists for laid-off workers?
France’s "Reconversion 360" program offers up to €10,000 for retraining in green energy or IT sectors.
