The problems of the automobile industry in Germany and other European countries have a negative impact on the production of auto parts. Edition Merkur informs about the wave of bankruptcies of large companies affected by the crisis and plans to close factories of such giants as Volkswagen, Mercedes-Benz and others.
One of the oldest manufacturers of auto parts in Germany, Klein GmbH & Co. KG (WKW), which had been operating since 1940, declared bankruptcy. This could result in job losses for nearly 3,000 employees.
In addition, the Erwin Lutz concern, specializing in the production of springs for cars since 1966, is ceasing its activities. The employees of the enterprise have already received notice of dismissal.
AE Group, a manufacturer of aluminum parts, founded in 1980, is also facing bankruptcy. More than 1,200 employees of the company may lose their jobs.
Auto giants such as BMW, Mercedes-Benz, Stellantis, Renault and Volkswagen AG are reducing production due to the difficult economic situation and rising costs. This has caused a crisis among auto parts suppliers, which are heavily dependent on orders from major automakers.
The publication Merkur predicts that the wave of bankruptcies will only increase due to the long economic crisis, which is largely caused by the increase in energy prices in Germany. High electricity costs put additional pressure on manufacturing companies, forcing them to cut production or close down.
It should be noted that Volkswagen’s decision to close factories in Germany for the first time in history is only the beginning of large-scale changes that await the entire EU automotive industry. According to experts’ estimates, there are more than 30 loss-making auto plants in the European Union, and this applies not only to Volkswagen, but also to Stellantis, Renault and other large car manufacturers.
