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Auto supplier from southern Germany is insolvent: 5,000 jobs are at risk

2024-02-29T11:04:04.349Z

Highlights: Auto supplier from southern Germany is insolvent: 5,000 jobs are at risk. After suppliers such as ZF Friedrichshafen, Continental, Michelin and Goodyear got into difficulties, widespread insolvency is now following. The automotive industry is currently undergoing a huge transformation due to the switch to electromobility. The construction of combustion cars requires much more staff than electric cars because the latter consists of fewer parts. Accordingly, fewer positions are needed. What happens next remains to be seen.



As of: February 29, 2024, 11:58 a.m

By: Amy Walker

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Auto suppliers are facing difficult times.

A company from southern Germany has to file for bankruptcy.

© Eibner press photo/DROFITSCH/Imago Images

Automotive suppliers everywhere in Germany are facing major challenges.

Once again, a well-known supplier has to file for bankruptcy.

Berlin - The wave of bankruptcies in the country continues: After suppliers such as ZF Friedrichshafen, Continental, Michelin and Goodyear got into difficulties, had to cut jobs and close locations, widespread insolvency is now following.

The Bad Urach company Eissmann Automotive and its subsidiary filed for bankruptcy in Tübingen on Wednesday (February 29).

WirtschaftsWoche

first reported

on it.

The crisis in the auto industry is spreading

The company was founded in 1964 and says it employs 5,000 people at 17 locations worldwide.

In 2021, the company achieved sales of 367 million euros.

Eissmann Automotive says it works with “all well-known automobile manufacturers and suppliers,” as it says on the company’s website.

Eissmann Automotive is not the first supplier and will not be the last to get into trouble.

The automotive industry is currently undergoing a huge transformation due to the switch to electromobility.

The construction of combustion cars requires much more staff than electric cars because the latter consists of fewer parts.

Accordingly, fewer positions are needed.

But there are also other problems for Eissmann: “The restructuring measures of the past few months were unable to compensate for the recession effects, various inflation drivers such as energy costs, material costs or interest rate developments,” the company said, according to

WirtschaftsWoche

.

The employees, 1,000 of whom are in Germany, will be provided with insolvency money for the next three months.

What happens next remains to be seen.

Source: merkur

All news articles on 2024-02-29

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