Founded in 1796
Auto supplier files for bankruptcy – 1,500 employees affected
November 26, 2024 – 1:26 p.mReading time: 1 Min.
After VW, Bosch and Continental: The crisis in the German auto industry continues to spread. Now the next supplier is filing for bankruptcy.
Gerhardi Kunststofftechnik GmbH from Lüdenscheid has run into financial difficulties. The automotive supplier has filed for insolvency at the Hagen district court. This emerges from an announcement on the insolvency notices.de portal. The lawyer Jan-Philipp Hoos from the law firm White & Case was appointed as the provisional insolvency administrator. Other media had previously reported on it.
Gerhardi employs a total of 1,500 people. What will happen next for them is still unclear. The insolvency administrator could not initially be reached for a reaction.
The company is one of the largest developers and producers of ”galvanized and technically sophisticated plastic parts” in Europe, as it says on its website. In addition to Lüdenscheid, Altena and Ibbenbüren, Gerhardi also has a location in Montgomery in the US state of Alabama. The company was founded in 1796. At that time the company produced buckles made of brass and copper.
The German auto industry is in crisis. The car manufacturer Volkswagen is facing wage cuts, factory closures and job cuts. Other manufacturers and suppliers such as ZF, Continental and Bosch recently announced that they would cut jobs.
How is the transition to electric vehicles impacting employment in the automotive sector?
Interview between Time.news Editor and Auto Industry Expert
Time.news Editor: Welcome to our special segment on the ongoing crisis in the German auto industry. Today, we have Dr. Anna Schmidt, a leading expert in automotive economics, joining us. Thank you for being here, Dr. Schmidt.
Dr. Anna Schmidt: Thank you for having me! It’s a crucial time for the industry, and I’m glad to discuss it.
Editor: Let’s dive right in. We’ve seen another major auto supplier file for bankruptcy, affecting around 1,500 employees. How significant is this moment in the context of the broader challenges facing the German auto industry?
Dr. Schmidt: It’s quite significant. This bankruptcy is not just about the loss of jobs; it symbolizes the deep-rooted issues that have been plaguing the industry for some time. With the likes of VW, Bosch, and Continental also facing difficulties, it’s clear that we are in a phase of major restructuring and turmoil.
Editor: It feels like a domino effect. What are the primary factors leading to this crisis?
Dr. Schmidt: Several factors are influencing this situation. First, there’s the global supply chain disruptions that emerged during the pandemic, significantly affecting production. Coupled with the shift towards electric vehicles—where many traditional suppliers are struggling to adapt—this has created a perfect storm. Furthermore, increasing competition from non-European manufacturers has put additional pressure on the German automotive sector.
Editor: Adaptation seems to be a keyword here. How are companies reacting to this shift towards electric vehicles?
Dr. Schmidt: Companies are investing heavily in new technologies and re-skilling their workforce. However, the transition is costly and time-consuming. Many suppliers, especially smaller ones, may not have the resources to pivot quickly enough. This bankruptcy is a wake-up call for the entire industry to be more agile and innovative in their approaches.
Editor: It’s alarming to see these established companies—some of which have been around since 1796—facing such existential threats. How does this reflect on the overall economic landscape in Germany?
Dr. Schmidt: The implications are quite broad. The auto industry is a cornerstone of the German economy, contributing notably to its GDP and employment. A decline here can lead to a ripple effect, impacting related sectors and overall economic stability. We’re likely to see increased government intervention to stabilize the situation and support a more sustainable transition.
Editor: With 1,500 employees affected by this latest bankruptcy, what can we expect for them and their communities?
Dr. Schmidt: It’s a tragic situation for the employees and the communities reliant on these jobs. While some may find opportunities in the changing landscape, many will face uncertainty. It’s crucial for local governments and organizations to step in with support programs, retraining options, and job placement services to assist those impacted.
Editor: Thank you, Dr. Schmidt, for your insights. The future holds a lot of challenges, but also opportunities for innovation and sustainability. We appreciate your time today.
Dr. Schmidt: Thank you for shedding light on this important issue. It will be interesting to see how the industry evolves in the coming years.