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Insolvency drama: Eissmann in Bad Urach loses 43 jobs!
Eissmann Automotive is insolvent, 5,000 jobs are at risk. An overview of the crisis facing German auto suppliers.
Insolvency drama: Eissmann in Bad Urach loses 43 jobs!
The German automotive supply industry is currently under pressure, and the automotive supplier Eissmann Automotive from Bad Urach is a striking example of the serious challenges that come with this change. The company has filed for bankruptcy since February 2024 and the effects are clearly felt by employees and locations. With more than 5,000 jobs at risk worldwide, including 1,000 in Germany, the situation is alarming. Mercury reports that the insolvency only affects the German locations in Bad Urach, Gera and Pirna, but still has a significant effect on employees.
The headquarters in Bad Urach is facing further changes. This week Eissmann announced that 43 employees will be laid off at the end of November. Klaus Rudolf, the company's CEO, voluntarily retired from management on June 30, 2025. The restructuring process in Bad Urach is moving slowly, and discussions with potential investors are ongoing to discuss the high fixed costs. The closure of the factory in Gera has already cost 220 jobs and production there was stopped at the end of July 2024, which increases the uncertainty even more. Focus informs that the workforce will receive insolvency benefits in the next three months, while operations at the remaining locations continue to run smoothly.
The challenges of the industry
The automotive industry in Germany is severely affected by massive change, particularly towards electromobility. This change means that fewer staff are required because electric cars consist of fewer individual parts than conventional vehicles. Loud Car Motor and Sport Not only Eissmann, but also other large suppliers such as ZF Friedrichshafen and Continental are under pressure. These companies have also announced job cuts and plant closures, adding to widespread uncertainty in the industry.
The mood in the industry is particularly worrying. The Ifo Institute recently found that sentiment in the German automotive industry is at a low point, with clear pessimism for the next few months. The numbers speak volumes: In October the mood barometer was -28.6 and fell to -32.1 in November.
Global and local impacts
The crisis extends beyond Germany's borders. Other companies such as Barry Callebaut and Bayer also have plans for severe staff cuts. Eissmann is not alone in this difficult situation, but the uncertainties and challenges affecting the entire automotive industry make a speedy recovery uncertain. Until the closure of the Gera plant and the announced layoffs in Bad Urach, the entire workforce will remain in a tense situation.
The affected employees hope that the effects will be cushioned through a reconciliation of interests and a social plan, which could at least provide some relief. Whether this will be sufficient remains to be seen as discussions continue with potential investors about stable operations at the remaining locations.