The car industry is set for its latest blow, with a key factory set to close in 2026, resulting in hundreds of jobs being axed. Belgian-based Dumarey International Engineering Company specialises in products and services across the automotive and industrial industries.
However, reports suggest that Dumarey’s Strasbourg factory, responsible for building gearboxes for cars, is set to close later this year. Malek Kirouane of the CGT union told AFP: “The factory is ceasing operations. This means the loss of 320 direct employees. I’m not counting indirect employees because we also have contractors. The impact will be enormous.”
Arnaud Bailo, president of Dumarey Powerglide Strasbourg, said the closures were “inevitable”. He explained that the “major structural crisis” in the car sector was behind the latest decision.
Arnaud added: “We informed the DPS Works Council and employees yesterday of a plan to cease our activities during 2026.”
They suggested that a sudden and unanticipated disruption of orders for automatic transmissions was also responsible for the move. Dumarey bosses suggested that this had led to an 85% reduction in the company's turnover.
It is believed that Dumarey employees will be let go as part of three waves of redundancies. It is expected that around 100 employees will lose their jobs on 1 June, 2026, with another 200 on 1 August.
Meanwhile, the remainder of the company's staff will lose their positions at the end of 2026. It comes just a year after more than 200 jobs were lost at Dumarey’s Powerglide centre in a major blow to the staff.
According to Malek, of the 234 people made redundant back in February 2025, "very few have found work again”. It’s just the latest blow to hit the car industry, with manufacturing jobs set for a difficult start to 2026.
The German car market is set to be hardest hit with significant job losses across some of its major companies. Last year, Bosch confirmed there were plans to cut 13,000 jobs in its mobility division.
Meanwhile, car parts business ZF Friedrichshafen confirmed it would axe 7,600 redundancies within its electrified drivetrain division.
