Insolvency drama in Remscheid: 500 Winning BLW employees affected!

Insolvency drama in Remscheid: 500 Winning BLW employees affected!

There is malaise in the automotive industry: The renowned automotive supplier Winning BLW headquartered in Remscheid filed for bankruptcy today. Around 500 employees in the German locations of Remscheid, Duisburg and Penzberg are affected by this development. The company is known for its high-precision forgings, which are produced not only for cars but also for commercial vehicles such as trucks. The affected products include bevel and switching gears as well as steering pinions and parts for engines and transmissions.

The termination due to the bankruptcy filing came as a surprise to many employees, as there had previously been no obvious indications of such a development. Mahmut Esmer, the chairman of the works council in Remscheid, expresses concern and explains that collectively agreed reductions in working hours and short-time work have already been used to avert insolvency. Nevertheless, he remains optimistic that there could be a restart next year.

Reasons for the crisis

The insolvency is primarily justified by a significant decline in sales and the tense situation on the automobile market. General representative Jan Groß also confirms this: “We want to restructure ourselves under self-management,” he says. The company is supported by Jens Schmidt, the provisional administrator, who has taken over supervision of the insolvency proceedings.

The challenges facing the automotive supply industry are anything but small. Loud Mercury The industry experienced a dramatic increase in bankruptcies in the first six months of 2024, with 162 companies with sales of more than ten million euros filing for bankruptcy - an increase of 41 percent compared to the previous year. Suppliers in particular have been hit hard, with major bankruptcies increasing by 67 percent.

The future remains uncertain

There are also immediate concerns regarding the sister company Winning BLW Management GmbH, which employs around 400 people; The situation here is currently unclear. However, the insolvency money is secured for the employees affected by the insolvency proceedings until the end of the year. This is usually paid in the amount of the net wage and also covers certain surcharges. The insolvency benefit is financed by the Federal Employment Agency and a statutory levy from employers.

Developments in the automotive industry remain exciting, and it remains to be seen how many companies will be affected by this crisis. The industry faces challenges exacerbated by slowing sales of electric cars, rising raw material prices and the need to invest in research and development. Politicians and unions are also calling for higher wages, which could further increase the pressure on the already struggling supplier industry.

The next few weeks will be crucial in determining which direction developments take Winning BLW and the entire industry.