The German car giant BKD was in the middle of wage negotiations with its employees. But now the management can announce that the entire company has gone bankrupt. 500 people have been laid off.
A new bankruptcy has hit the German automotive industry. This time it is the automotive giant BKD that is turning the key. However, it is happening somewhat unexpectedly.
The company, Boryszew Kunststofftechnik Deutschland GmbH, which produces plastic parts for car interiors, has thrown in the towel in the middle of some wage negotiations.
BKD, a major subcontractor to the automotive industry, is experiencing financial difficulties. This means that 500 jobs are at risk. The bankruptcy comes after a period of falling demand from its largest customer – the Volkswagen Group.
The subcontractor's financial situation has deteriorated considerably during the same period. The decline in orders from Volkswagen has had a major impact on BKD. And now the production of injection-molded plastic parts for cars is not continuing.
In Gardelegen, where BKD has both its head office and its factory, the bankruptcy will have serious consequences, it is said. The town has been dependent on the company, which creates many direct and indirect jobs.
Bankruptcy triggers crisis mode in the city council
Mayor Mandy Schumacher has responded by calling the city council into emergency mode. The plan is to minimize the negative consequences.
– You could say that the assets are frozen and the company is placed under guardianship until it is finally decided whether insolvency proceedings will be initiated, says lawyer Michael Steenbuck after a hearing in the bankruptcy court to Bild Zeitung .
Bankruptcy means that the company is under supervision for three months. During that period, management must find a solution. Agreements must also be made with the parties who owe money.
The factory in Gardelegen has been placed under guardianship. And if a solution is to be found that can save the factory, time is running out.
Many citizens of Gardelegen are worried. The factory has meant a lot to the town, but now it is more than uncertain whether production will collapse and the many jobs will disappear.
BKD's problems have hit Germany's automotive industry, which is already under heavy pressure, even harder.
The other day, German Bosch announced that it cannot save itself from the crisis by laying off 12,000 employees. More will be needed. Read more about it here .
