Dumarey Powerglide to Close Strasbourg Factory in 2026, Resulting in 320 Job Losses

Dumarey Powerglide, a French automotive supplier, has announced the closure of its factory in Strasbourg by the end of 2026, resulting in the loss of 320 jobs. This decision marks the culmination of a difficult period for the plant, which had already undergone significant layoffs, including the elimination of 234 jobs less than a year ago.

The closure is primarily due to the loss of Dumarey's major client, the German equipment manufacturer ZF, which has decided to internalize production of components and gearboxes that were previously outsourced. This pivotal shift led to an 84% drop in revenue for the Strasbourg plant, according to Laurent Julien, secretary of the CFDT at the company's works council.

Arnaud Bailo, president of Dumarey Powerglide Strasbourg, characterized the closure as "inevitable," attributing it to a "major structural crisis" in the automotive sector. The industry has been severely affected by declining vehicle sales in key markets, notably Europe and China, further intensifying the crisis faced by suppliers like Dumarey.

The layoffs are planned in three phases throughout 2026: approximately 100 employees will be laid off in June, followed by around 200 in August, with the remainder dismissed by the end of the year. CGT union representative Malek Kirouane stressed the profound impact on the workforce, including indirect job losses among contractors. He described the emotional reaction among employees as many were in tears upon hearing the news, underscoring the human toll of the factory's shutdown.

Attempts to revive the site with new projects were made but deemed unfeasible due to Dumarey's financial difficulties and significant debt burden. This closure reflects broader challenges in the automotive supply industry as firms grapple with market contractions and changing production strategies.

This development marks a critical moment for the region's industrial landscape, with substantial job losses and economic repercussions expected as the company ceases operations in Strasbourg.