Crisis in the auto industry
Traditional Swabian company files for bankruptcy
22.11.2024Reading time: 2 min.
More than 60 years ago, Paul Kemmer founded a tool factory in Schwäbisch Gmünd. The resulting company is now insolvent.
MPK Kemmer GmbH PCB Tools, based in Schwäbisch Gmünd-Großdeinbach, has filed for bankruptcy at the Aalen district court. The company produces micro tools such as drills and milling cutters for industries such as electronics, automotive, aviation and medical technology. 49 employees are affected, as the “Schwäbische Post” reports.
The lawyer Sebastian Mielke was appointed as the provisional insolvency administrator. According to his own statement, he took over management immediately after the decision and visited the company on site. He provided information about the current situation at a staff meeting. Until now, the company was managed by Florian Kemmer, grandson of the company founder, and Thomas Neuschl.
During the insolvency proceedings, the employees’ wages are covered for three months by the employment agency’s insolvency benefit. Mielke explained that the employees were ready to actively support the restructuring process.
The insolvency administrator attributes the financial difficulties to several factors. The crisis in the automotive industry and the postponement of orders in particular led to liquidity problems. As a result, investments in future technologies could not be refinanced as planned. In addition, a general decline in sales weighed on the company. Nevertheless, Mielke is optimistic that investors can be found: “The company makes a good impression and we are confident that we can find a good solution here.”
MPK Kemmer GmbH PCB Tools is part of a long and complex company history. The origins go back to a tool factory founded by Paul Kemmer in 1962. After the original company was sold to US investors in 1982, the company went through numerous changes of ownership. At the same time, Paul Kemmer’s son Martin built up his own group of companies, which had to file for bankruptcy in 2008. His son Florian subsequently took over what is now MPK Kemmer GmbH from the insolvency estate.
MPK Kemmer GmbH is legally independent of other companies that also emerged from the Kemmer group of companies. These include MPK Special Tools GmbH in Kleindeinbach, which was taken over by Zecha Hartmetall- Werkzeugfabrikation and has no connection with the current insolvency.
How can companies in the automotive supply chain effectively adapt to industry changes to avoid insolvency?
Time.news Interview with Expert on Auto Industry Crisis
Interviewer (Editor of Time.news): Welcome to our interview segment. Today, we have the pleasure of speaking with Dr. Julia Schmidt, an expert in automotive industry trends and economics. We’re here to discuss the recent bankruptcy filing of MPK Kemmer GmbH, a notable player in the tools sector for the automotive industry. Thank you for joining us, Dr. Schmidt.
Dr. Julia Schmidt: Thank you for having me. It’s a critical time for the industry, and I’m glad to discuss it.
Editor: MPK Kemmer has a long history, having been founded over 60 years ago by Paul Kemmer. What do you think are the key factors that led to the company’s insolvency?
Dr. Schmidt: The bankruptcy of MPK Kemmer is indeed a significant development. One of the primary factors is the overarching crisis in the automotive sector itself, exacerbated by shifts towards electric vehicles and the increasing use of digital and automated technologies. Traditional suppliers often struggle to adapt to these rapid changes, and it seems MPK Kemmer was unable to pivot their product lines effectively.
Editor: That makes sense. The article also mentioned that the company produced micro tools for various industries, including electronics and aviation. Do you see this diversification as a model for success, or has it added to their challenges?
Dr. Schmidt: Diversification can be a double-edged sword. On one hand, producing for multiple industries can mitigate risks and open new markets. On the other hand, it can stretch resources and focus, particularly if the company lacks the scale and financial agility to compete across different segments. It appears MPK Kemmer may have misjudged the balance necessary for sustaining operations in such diverse fields.
Editor: You mentioned the industry’s shift towards electric vehicles. How is this impacting traditional automotive suppliers, and do you think that this trend will lead to more insolvencies?
Dr. Schmidt: Absolutely, the transition to electric vehicles is reshaping the entire automotive supply chain. Traditional manufacturers and suppliers who are slow to innovate or invest in new technologies may find themselves in perilous positions. We could see more insolvencies, especially among those that cannot adapt their product offerings or manage the shift in consumer and industry demand effectively.
Editor: Given the scale of this change, what strategies would you recommend for companies in the automotive supply chain to mitigate the risk of insolvency?
Dr. Schmidt: Companies must prioritize innovation, investing in research and development to remain competitive. Collaborations with tech companies can also be valuable for integrating new technologies. Moreover, diversification should focus on segments with clear growth potential, like electric vehicle components and software. maintaining strong supply chain management and financial health will be critical to weather industry fluctuations.
Editor: Some employees at MPK Kemmer will have their salaries covered for three months through the employment agency’s insolvency benefit. What does this mean for the workers, and how can they navigate this uncertain situation?
Dr. Schmidt: It’s a temporary relief for the employees, but the uncertainty remains high. They will need to prepare for the possibility of job searching while keeping an eye on the company’s progress through insolvency proceedings. It might also be a good time for them to explore training or upskilling initiatives that can enhance their employability in a changing automotive landscape.
Editor: with the arrival of the new insolvency administrator, what changes do you anticipate for the company’s management and future?
Dr. Schmidt: The new administrator, Sebastian Mielke, will likely take a closer look at preserving the company’s assets and exploring possibilities for restructuring. Depending on the findings, he may consider selling parts of the business or seeking investors. This transitional phase is crucial; the approach he takes could significantly impact the future of MPK Kemmer and its employees.
Editor: Thank you, Dr. Schmidt, for your insightful analysis. It’s clear that the automotive industry is at a pivotal moment, and understanding these challenges is essential for everyone involved.
Dr. Schmidt: Thank you for having me, and I hope our conversation sheds light on the complexities at play in the industry.
Editor: Absolutely. And thank you to our readers for joining us for this discussion. We’ll keep you updated on further developments in the automotive sector.