There has been unrest for some time at the Dumarey factory in Strasbourg, which manufactures car gearboxes. The union protest is set to grow now that West Flemish businessman Guido Dumarey has announced plans to close the factory in Alsace, France, before the end of this year.
The closure could result in the loss of 320 jobs. Management emphasizes that four years ago, it invested €80 million to “diversify” its customer base and make the “shift to electric.”
Loss of a key customer
Recently, 234 jobs were already cut at Dumarey Powerglide as part of a restructuring program. The factory, which Dumarey purchased from General Motors in 2013 when it employed 2,300 people, faced the expiration of its contract with German supplier ZF, its most important customer.
According to the unions, ZF’s decision to internalize production led to an 84% revenue loss.
Deep in debt
Following last year’s significant restructuring, management proposed new projects. Still, the company was “so deeply in debt that it could no longer be credible,” says Malek Kirouane, CGT union representative.
“They say they have no money left, that there is a crisis in the automotive sector, that the Chinese have taken over all the markets… all the arguments are valid. But the problem is that they messed up strategically, even when the company was still in good financial health.”
Some deputies are also wondering, Where did the €25 million in public funds that Dumarey Strasbourg received go?”
Management primarily cites the “major structural crisis” in the automotive sector and increasing competition from China as the reason for the closure.
Specifically, Kirouane expects “three waves” of layoffs in 2026: approximately 100 on June 1, approximately 200 on August 1, and the final wave at the end of the year.
Focus on hydrogen engines
Dumarey had previously been in the running to acquire the defunct Belgian bus manufacturer Van Hool.
Italy is currently the most critical region for the Dumarey Group, formerly Punch, especially following the acquisitions of former General Motors and Vitesco sites. With support from the European Investment Bank, Dumarey is focusing on hydrogen engines and injectors at its factories in Turin and Pisa.
In early 2025, the group also acquired MAHLE Powertrain LLC in Detroit and renamed it Dumarey USA. It aims to capture the North American market with its hydrogen and e-fuel combustion engine technology.
The company, with its registered office in Nazareth-De Pinte, Belgium, also has factories in Slovakia (Detva), China (Tianjin), France (Bouthéon), and the UK (Silverstone).
The Dumarey Group employs approximately 3,000 people worldwide. Last year, the group posted a slight loss of roughly 1.8 million euros, but in the 2023 financial year, it incurred a heavy loss of almost 29 million euros. The group, with approximately 1 billion euros in turnover, is solvent, with equity exceeding 500 million euros.
