Efforts by PSA Peugeot Citroen (UG) and Fiat SpA (F) to end losses in Europe could cost more than 500,000 people their jobs as automakers and parts suppliers grapple with the effects of the European sovereign debt crisis.
The region’s auto industry, including component makers such as SKF AB (SKFB) and Autoliv Inc. (ALV), is set to pare payrolls as auto demand contracts for the fifth straight year. Easy-to-fire temporary workers, which account for about 1.5 million of the industry’s 7 million employees, would likely bear the brunt of the cuts, according to Lars Holmqvist, the former head of the region’s parts supplier association.
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