Auto supplier crisis: threatened layoffs in eastern Germany!

Auto supplier crisis: threatened layoffs in eastern Germany!

The automotive industry in Germany is under pressure and that worries many people. Particularly in the east of the country, suppliers are feeling the effects of factory closures and worrying job cuts. IG METALL reports that around 200,000 people are employed in the supply industry in eastern Germany. But the crisis is already having consequences: In Thuringia, entrepreneurs like Rico Chmelik, managing director of the Thuringia Automotive Association, are reporting numerous layoffs, site closures and bankruptcies among regional suppliers.

Over the past two years, the number of these incidents has increased, a clear indication of the challenges posed by globalization and structural change. Despite the difficulties, the majority of Thuringia's 690 suppliers, which employ around 60,000 people, remain robust. These companies rely on adaptability, especially in the areas of CO2-neutral production, digitalization and artificial intelligence.

Challenges and support in Saxony-Anhalt

Saxony-Anhalt's Economics Minister Sven Schulze has highlighted the difficulties in adapting for some suppliers, especially foundries. Its goal is to maintain the automotive supply industry in the country in the long term and to support the companies affected. Around 25,500 people currently work in the automotive supply industry in Saxony-Anhalt, with many of the companies being family-run.

The situation in Saxony is also tense. The automotive supply industry is the most important sector here with around 70,000 employees. Dirk Vogel, head of the automotive supplier network in Saxony, reports that around 5,000 jobs will be cut, mainly affecting temporary workers. Vogel is critical of the high price discounts demanded by automobile manufacturers and the threat of relocation of orders to low-wage countries. There is an urgent need for planning security and targeted funding programs.

Future-oriented approaches in the region

In order to escape the vicious circle, MAH-net was founded as a transformation network for the vehicle and supplier industry. Launched in 2022 on the initiative of Sachsen-Anhalt Automotive e.V., the network aims to develop a strategy for structural change in the automotive industry. Through collaboration with partners from business, science and politics, a sustainable, cross-sector industry is to be created.

The initiative focuses on three areas of action: modern working environments, sustainable value creation and regional perspectives. With its approach of informing regional actors, networking and promoting joint projects, MAH-net hopes to improve economic stability and employment security in the region.

A comprehensive study to analyze the situation of the supplier industry and related sectors is also on the agenda. This analysis will include a SWOT analysis and develop concrete recommendations for action for new future areas. There are several important events on the program in the coming weeks, including the IG Metall structural policy conference in Chemnitz and the VDA SME Day in Bonn, both of which will contribute to the discussion about the current situation in the industry.

Developments in the automotive industry remain exciting. It is time for all stakeholders to work together and find solutions to overcome the challenges and secure the future of the industry. One thing is clear: action must be taken now because time is of the essence.

You can find further details on this topic at MDR and MAH-net.