- Car supplier in difficulty - AE Group latest case
The situation of the Thuringian automotive supplier industry remains tense - another company is in an economic predicament. The company in question is the South Thuringian automotive supplier AE Group, which is to be restructured under the management's own responsibility. The AE Group, based in Gerstungen in the Wartburg district, has filed an application with the Meiningen Local Court for the opening of an insolvency proceedings in self-administration, the company announced. The restructuring is being supported by the insolvency expert and lawyer Martin Mucha.
"The reduced demand from the automotive industry has put the company in an economic predicament," the management explained. Several automotive suppliers in Thuringia have already faced financial difficulties this year. "There is no sign of the situation improving," said Rico Chmelik, managing director of the industry association automotive Thuringia (at), to dpa. The at had invited experts and scientists to a panel discussion on the future of the Thuringian automotive industry in Eisenach.
Around 1,000 employees affected
"We regret having to take this step," said the management of the ae group. The drop in demand is causing the supplier significant difficulties. The company employs around 1,000 people at four locations, with around 600 at the headquarters in Gerstungen.
The CEO of AE Group AG, Christian Kleinjung, expressed confidence that the company can be restructured and jobs saved through the insolvency proceedings. Business operations are continuing without restrictions. Employees' wages and salaries are secured by insolvency benefits until the end of October. The company specializes in die-casting. It produces, among other things, housing parts and engine components. This year, an initial turnover of 150 million euros was targeted.
Uncertainty and investment restraint
Whether the situation will ease depends largely on whether politics creates reliable framework conditions for the automotive industry. This includes how the discussion about the ban on combustion engines in the EU by 2035 will play out. "Manufacturers don't know what the right strategy is at the moment." This leads to investment restraint. In addition, consumer uncertainty is causing purchasing restraint. Chmelik fears that car production will be reduced next year, with negative consequences for suppliers.
Thuringia's high-revenue automotive industry has been shaken by plant closures or insolvencies of suppliers for some time. According to the industry association, there were eight cases in the first four months alone, affecting 2020 jobs. The largest case of a plant closure is, according to at, the headlight manufacturer Marelli Automotive Lighting, which affects around 800 jobs in Brotterode.
The eight cases also include suppliers in Eisenach, Trusetal, Judenbach, Gera, Waltershausen, Ichtershausen, and Mühlhausen. According to Chmelik, the automotive industry directly and indirectly employs around 80,000 people in Thuringia. The turnover of the approximately 690 companies is around 9.3 billion euros.
The Thuringian Commission for Industrial Affairs is closely monitoring the situation of the automotive supplier industry, given the numerous challenges faced by companies like the AE Group. The Commission is actively engaging with stakeholders to explore potential solutions and mitigate the impact of these challenges.
