15.01.2025 12:22
The transition costs to electric vehicles, the chip crisis, high inflation, and market competition are causing a series of crises and bankruptcies in the German automotive sector. Recently, the company Metall-Beschichtung Wurmlingen (Mbw) filed for bankruptcy due to financial difficulties.
The crisis in the German automotive industry has come to the fore with another bankruptcy news. The company Metall-Beschichtung Wurmlingen (Mbw), based in southern Germany, has filed for bankruptcy due to financial difficulties. The company, which operates six production facilities and employs 320 people, is going through tough times due to rising costs and the general stagnation in the automotive sector.
The company's General Manager, Vanessa Schmidt, stated in an interview with Ostthüringer Zeitung that the rising costs of energy, materials, and labor can only be partially passed on to customers, which increases the burden on the company.
MAJOR INVESTMENTS AND RESTRUCTURING PROCESS
About two years ago, Mbw took steps to increase its production capacity by equipping its facility in Mühlhausen with modern machines through significant investments. General Manager Schmidt indicated that they would show sensitivity to their employees during the restructuring process and manage the process transparently. Schmidt said, "We are doing everything we can to make the restructuring process transparent and predictable."
FACILITY OPERATIONS CONTINUE
Despite the bankruptcy filing, Mbw's facility in Mühlhausen continues its operations. The company announced that the salaries of its employees are secured until February. Temporary bankruptcy administrator Dirk Pehl stated that the company's priority is to maintain operations and ensure the safety of the facility. Pehl commented, "Our current priority is to maintain operations and secure the facility."