FRANKFURT, Aug. 15 (Xinhua) -- German auto supplier ae group filed for bankruptcy Monday after months of business restructuring, the third company in the German auto industry to be formally declared insolvent in the last two weeks.
As one of the leading producers of aluminum die-cast parts in Germany, the group began a reorganization plan in the summer of 2023 due to a decline in its operating profitability caused by rising energy and raw material prices, according to German media.
"Although we have already stepped up our efforts to restructure our company in recent months, the slump in demand from car manufacturers is still causing us great difficulties," said the company in a press release.
The German car industry has been sliding from one crisis to the next, commented the German business news magazine WirtschaftsWoche. Both the shift to electric vehicles and the level of demand are stalling, which is having an impact on suppliers as well.
Last week, industry leader Muerdter Group was declared bankruptcy, shortly after automotive supplier Recaro with a history of over 110 years. Recaro cited extreme price increases, market changes and the loss of a major order as reasons for the insolvency.
While the exact reasons for the insolvency of Muerdter Group are not yet known, the various problems currently affecting the automotive industry are likely to have contributed to the bankruptcy, said industry insiders.
"At the moment, things are burning in many places," noted chairman of the Thuringia automotive industry association Mathias Hasecke on Wednesday at a debate on the future of the automotive industry in the German state Thuringia.
"There is new bad news from suppliers in the state almost every day", Hasecke added.
