Another subcontractor in the German automotive industry has turned the key. Voit Automotive, which has 1,600 employees, went bankrupt on Thursday this week.
Voit Automotive, a German automotive supplier, has filed for bankruptcy. The company, which employs 1,600 people, filed for bankruptcy at the district court in Saarbrücken.
According to German media, this happened on Thursday this week.
Voit Automotive manufactures aluminum components for several large German car manufacturers, including the also crisis-stricken ZF Friedrichshafen.
The bankruptcy is a heavy blow to the employees and the two cities, St Ingbert and Saarbrücken, where production took place. Voit Automotive was founded in 1947 and has since then been one of the most important employers in the region.
The crisis at Voit Automotive began during the pandemic. Demand for components dropped dramatically as the automotive industry experienced a severe slowdown.
But the crisis that led to the bankruptcy has been long-lasting. Last spring, Chinese Chongqing Milison Technologies emerged as a potential savior.
The Chinese were interested in taking over Voit Automotive and investing in the company.
However, negotiations stalled after Christmas. The Chinese were forced to withdraw from the agreement as it violated regulations at home in China. Voit Automotive could not survive without the Chinese investment and had to file for bankruptcy.
The trustee is now trying to reach an agreement with the creditors. However, it is unknown whether the company will be saved. The bankruptcy of Voit Automotive is a symptom of the deep crisis that is affecting the German automotive industry.
Ever since World War II, the automotive industry has been the cornerstone of the German economy. But today, all German car manufacturers are facing major challenges.
Subcontractors like Voit Automotive are therefore hit even harder.
ZF Friedrichshafen, one of Voit Automotive's largest customers, has announced layoffs of around 14,000 employees. All due to a cost-cutting plan that is to find over 40 billion kroner in savings over the next few years.
Gearbox giant ZF is also talking about closing factories, something that has already led to a drop in demand for the components that Voit Automotive produces.
According to German analysts, there is no improvement in sight for the German automotive industry. Several subcontractors are expected to go bankrupt in the near future.
The bankruptcy of Voit Automotive is an example of the challenges facing the German automotive industry. Several car brands have already succumbed to the pressure.
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