412 The European automotive sector, long considered a cornerstone of the region's economy, is undergoing a turbulent phase. Several major manufacturers and suppliers have recently announced significant layoffs and plant closures, citing a combination of weak demand, high production costs, intensifying competition from Chinese manufacturers, and a sluggish transition to electric vehicles. The challenges faced by the industry have triggered a wave of restructuring across various companies. Here is a detailed account of the recent developments: Volkswagen, Europe's largest carmaker, struck an agreement with unions on 20 December to cut 35,000 jobs while reducing factory output in Germany by nearly 25%. Although the agreement does not include immediate plant closures, the company confirmed earlier in December that its Audi plant in Brussels will cease production by 28 February due to a lack of viable alternatives to closure.