Bitter news from southern Thuringia! A company that employs around 1,000 people has had to file for bankruptcy here. It is just one of several other companies in the industry that have gotten into financial difficulties.
You can read here which Thuringian company it is – and what exactly will happen next for the employees.
Thuringia: Auto supplier in insolvency
The automotive supplier “AE Group” based in Gerstungen is affected and is now to be restructured under the management’s own responsibility. The company has filed an application with the Meiningen District Court to open insolvency proceedings under self-administration, the company announced. In such a procedure, there is no external insolvency administrator, but the affected companies can seek support from a consultant. In the case of the “AE Group”, lawyer Martin Mucha is involved as a restructuring expert.
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Wages secured until the end of October
“We very much regret having to take this step,” said the management of the ae group. The collapse in demand is hitting the supplier hard. The company says it employs around 1,000 people at four locations. According to company information, there are around 600 at the headquarters in Gerstungen alone.
The CEO of AE Group AG, Christian Kleinjung, expressed his confidence that the insolvency proceedings would enable the company to be rehabilitated and jobs to be saved. Business operations will continue without restrictions. The wages and salaries of employees are secured through insolvency benefits until the end of October. The company specializes in die casting. Housing parts and engine components are manufactured, among other things. This year, a turnover of 150 million euros was originally targeted.
“Manufacturers don’t know what the right strategy is”
Whether the situation will ease depends primarily on whether politicians create reliable framework conditions for the automotive industry. This includes how the discussion about the ban on combustion engines in the EU from 2035 turns out. “Manufacturers currently do not know what the right strategy is.” This leads to a reluctance to invest. In addition, there is uncertainty among consumers, which is causing them to be reluctant to buy. Chmelik fears that car production will be reduced next year – with negative effects on suppliers.
Thuringia’s high-revenue automotive industry has been rocked for some time by site closures or bankruptcies of suppliers. According to the industry association, there were eight cases in the first four months alone, affecting 2020 jobs. According to at, the largest case of site closure is the headlight manufacturer Marelli Automotive Lighting, which is affecting around 800 jobs in Brotterode.
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