German Auto Suppliers Face Crisis: Job Cuts and Plant Closures Loom
April 29, 2025
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