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Massive job losses: AE Group closes plants in Thuringia and Hesse!
The AE Group is closing locations in Gerstungen and Nentershausen, affecting 683 jobs. Reasons: bankruptcy and weak demand.
Massive job losses: AE Group closes plants in Thuringia and Hesse!
The sad news from the automotive industry continues: The AE Group is closing its two plants in Gerstungen (Thuringia) and Nentershausen (Hesse) at the end of the year. A total of around 683 employees are affected, including 549 in Thuringia and 134 in Hesse. These decisions follow the self-administration bankruptcy that the company filed for in August 2024 and the unsuccessful search for investors. According to insuedthueringen.de there were no viable offers, which was the hopes of the Chairman of the Board Christian Kleinjung called for restructuring.
The insolvency administrator Romy Metzger expressed concern about the extremely challenging situation in the automotive industry. High energy and raw material prices, coupled with international uncertainties, pose immense problems for companies. Another alarm sign for the industry is VW's tightened austerity measures, which are causing difficulties for many suppliers in Thuringia. This closure also follows the previous closure of the Lübeck plant in March 2025 and the cessation of operations of AE Group Polska in Poland in June.
Jobs at risk
The closures have a profound impact on the communities affected. Mayor Michael Weinert from Nentershausen was affected and worried about the consequences for the region. AE Group employees now have the opportunity to move to a transfer company that offers support in finding a job and further training. A social plan also provides for up to six months of salary payments to make the transition easier.
As far as the industry as a whole is concerned, a bleak picture emerges: Sales in the German automotive industry fell by 5% to 536 billion euros in 2024, and the decline among suppliers was twice as strong at 8%, according to an analysis by ey.com shows. A worrying trend reinforced not only by the fluctuations of global markets but also by geopolitical uncertainties. According to forecasts, there could be further relocations of production to countries such as the USA or China.
The job cuts in the vehicle supply sector are alarming; 43,000 jobs have already been cut since 2019. The number of employees is at its lowest level in 18 years, and as Metzger notes, the failed investor search is symptomatic of the entire industry and not of the employees or the technical level of the AE Group. There are currently 267,000 jobs in the supplier industry at risk, and the industry seems to be unable to find a way out of the current crisis.
The closure of the plants is not only a loss for those directly affected, but also casts a shadow over the entire automotive industry in Germany, which finds itself in an uncertain and dangerous situation.