German factories limit production. The hard times of Western industry are falling on the Czech Republic – Seznam Zprávy

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The German economy is weakening, the industry there is having problems – especially the car companies and related plants – and large companies are reporting layoffs. Will this move into the Czech Republic? A recent report from Adient was the first threat. It is closing two plants in the Czech Republic, and within two years 1,100 people will be out of work. And she won’t be the only one.

In the last three months he reported Labor Office large layoffs of 31 employers – the number of layoffs for the quarter will exceed six thousand in total. “However, attention must be drawn to the fact that if employers report to the Labor Office that they expect large discounts, that does not mean that people will lose their jobs immediately. Major losses usually occur within a few months, moreover, they may not always occur,” explained Martin Bušo, spokesperson for the Labor Office.

And other companies will join. For example, the chapel-based manufacturer of pressed and molded parts for engines, bodies and chassis – the Brawe company – had 300 people just two years ago. In the last few weeks, however, they have given notices to the last four dozen workers, and the plant is closing.

As a result of the reduced number of orders and production volume, there were layoffs at Beneš a Lát, which specializes in aluminum, zinc and plastic alloy products. “Before the covid, we had 450. After the latest reduction, which is happening now, we will be around 300 or slightly below 300,” said Jan Lát from the company’s management, depending on who the company is struggling with its lack of orders. From tens of thousands to thousands, from thousands to hundreds of pieces.

The reduction in costs and increased emphasis on efficiency is explained in the automotive field by Jan Stehlík from Teseny, who deals with software testing for car manufacturers as well. “I would prefer to call the current period as the kind of optimization in the automotive industry that happened after a long period of growth. Tests are now much smaller and, above all, for much less money. That’s why we also had to try to fire several employees,” said Stehlík.

“In general, the situation is also bad because of the way consumer demand is similar and how it has developed in Western Europe. This, of course, also has a negative impact on our production, which is mainly exported,” explained Radek Špicar, vice-president of the Union of Industry and Transport, saying that car companies are under great pressure to move to clean mobility and investment. very much, but at the same time they are at risk of billions in fines. “Everyone hopes to avoid layoffs, but in rare cases I think it won’t be possible. So far, however, I don’t see a big wave of layoffs,” said Špicar.

Producers are not helped by expensive energy even compared to other countries. They also reduce the country’s competitiveness. Therefore, the refinery part of SECO Industries also had to go to layoffs. “However, it is not so relaxed that we have to report to the Labor Office,” said Jiří Voplakal, director of the furnace department.

“Some companies cannot stand the problems, and the reality of the economy is above what has been working here for years – to keep people, because when the market comes back, there will be time hard for companies to find,” said the situation, an expert on cars. market, Petr Knap from EY.

According to him, this is also indicated by the current view of purchasing managers’ optimism and the status of orders in Germany and here. “The slowdown will be more permanent and the outlook is uncertain. “I think a lot of providers at this point are reaching out to regular workers after reducing agency staff or limiting their use,” Knap said, adding that there will be problems with the reporting by smaller second- and third-tier suppliers – ie those who report supply problems directly to car companies.

“Then, on the other hand, we see that Vitesco, for example, is now opening a large factory. That scissor will open up and those who were doing work at the lower levels of the supply chain will struggle with smaller margins,” Knap said.

Many companies announced layoffs in Germany first, and this later spread to Czech branches as well. For example, the German concern Continental already announced at the beginning of the year that more than seven thousand jobs were suspended, and later it turned out that there will be hundreds of people from the Czech Republic as well. In Brandýs nad Labem, the concern announced that approximately 200 positions in the administration would be eliminated over the next two years, but the plant in Jičín was also cut.

Question marks then override ZF concern. The latter have serious problems worldwide, and in the coming years the group wants to lay off up to 14,000 workers. At a press conference in Friedrichshafen, the CEO of the company, Holger Klein, announced this, saying that the layoffs should mainly concern the German market. Even in the Czech Republic, the company has more than 3.5 thousand employees and 11 plant and development centers.

ZF Group spokeswoman Marta Surowiec answered the question of whether layoffs are imminent here: “The announced reorganization concerns German branches, there are currently no extensive plans for branches outside the Germany. However, we regularly monitor the efficiency and profitability of our plants around the world. We work where plants fall below a certain level of profitability and cannot return to success without measures to increase efficiency. “

The situation in Germany is bad. As the DPA group said, according to a study by the consulting company Horvath, more than half of the companies in the German car sector are planning to reduce the number of jobs.

Of course, the job loss debates aren’t just about car-related companies. After major reductions were announced in nearby Germany by large groups such as Bayer AG, the agrochemical BASF, which is moving production to China, or Miele or Henkel, similar reports are beginning to make noise from the Czech Republic as well.

Břeclav-based elevator and escalator maker Otis will lay off 200 of its current 250 employees by the end of next year and move escalator production to a Chinese factory. The Austrian company Fronius then lays off 127 workers in the country, mainly in the solar department of the production center in Český Krumlov. However, companies such as Inproma Třinec and Foxconn also reduced movements and headcount.

“The business is not doing very well. We’ll be happy to get to zero in a full year. This is because the recovery of consumer demand across Europe is slower than expected after all the crises,” said Špicar.