Dumarey Powerglide to Close Strasbourg Factory, Impacting 320 Jobs

The Dumarey Powerglide factory in Strasbourg, France, is set to close by the end of 2026, resulting in the loss of 320 jobs. The closure follows a significant downturn in business, stemming primarily from the loss of a major contract with ZF, a German automotive equipment manufacturer [1]. This news marks another setback for the region’s manufacturing sector, which has experienced a decline in factory jobs in recent years [2].

Loss of Key contract and Diversification Efforts

dumarey Powerglide’s troubles began in 2024 when ZF ended its contract for the production of an 8-speed gearbox, which accounted for 85% of the Strasbourg plant’s turnover. While the company invested 80 million euros over the past four years in an attempt to diversify its product line and cater to the growing electric vehicle market [3], these efforts proved insufficient to offset the loss of revenue from ZF. The company began manufacturing components for Emotors, a joint venture between nidec and Stellantis, but production volumes were 40% lower than initially projected.

Phased Closure and Job Protection Plan

The plant’s closure will be implemented in three phases, beginning in June and concluding by the end of 2026, with complete production ceasing in August, according to the CGT union [1]. A 60 million euro guarantee fund, established in 2024 through a memorandum of understanding between the Dumarey group and ZF, will be utilized to support employees during the transition. This fund will facilitate socially responsible support measures, including reclassification assistance, support programs, and compensation exceeding legal requirements. The average age of employees is 52, with an average seniority of 26 years.

Future of the Site

Dumarey management is actively seeking a buyer for the 900,000 square meter site,which includes a 120,000 square meter building located at the Autonomous Port of Strasbourg. The facility was originally built by General Motors in 1967.

Impact on Strasbourg’s Manufacturing Sector

The closure of the Dumarey Powerglide factory adds to a concerning trend of declining manufacturing employment in Strasbourg. The city has lost 18% of its factory jobs since 2010 [2].This closure echoes similar downsizing events, such as the reductions at Siemens Energy in 2022, highlighting the challenges facing the region’s industrial base.