German Auto Suppliers Face Crisis: Job Cuts and Plant Closures Loom

April 29, 2025
German Auto Suppliers Face Crisis: Job Cuts and Plant Closures Loom
  • Among the companies particularly affected are Neumayer Tekfor in Schmölln and Motherson in Kronach, both of which are at risk of substantial layoffs.

  • Motherson, located in Kronach, plans to cut up to 150 jobs by the end of 2026 due to declining sales and increased price pressure from Eastern Europe.

  • Employees at Motherson were informed about the job cuts during a works meeting on April 24, 2025, and negotiations for a social plan are currently underway.

  • This announcement follows Motherson's previous decision to close its Judenbach plant in Thuringia by September 2026, which will eliminate 200 jobs.

  • The crisis in the automotive supply sector is marked by revenue and profit declines, layoffs, site closures, and bankruptcies affecting both large corporations like Bosch and Continental and smaller firms.

  • Neumayer Tekfor may face a plant closure that threatens 380 jobs, with ongoing discussions about the plant's future and its economic viability.

  • The future of the Schmölln plant remains uncertain as evaluations of operational efficiency continue alongside discussions with the works council.

  • The automotive supplier industry in Germany is currently facing a severe crisis, leading to significant job losses and potential site closures across major and smaller companies.

  • The closure of the Judenbach facility indicates a troubling pattern of layoffs for Motherson since it acquired the sites from the Dr. Schneider Group in the summer of 2023.

Summary based on 2 sources


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