Heiterblick Faces Critical Challenges Amid Insolvency
The Leipzig-based tram manufacturer Heiterblick is currently grappling with significant challenges as it faces insolvency. Once aspiring to become the leading name in the streetcar manufacturing sector, the company now finds itself in a precarious situation.
Earlier this year, the managing director of Heiterblick expressed optimism about the company's future, even seeking recognition as the Saxon Entrepreneur of the Year. Heiterblick aimed to launch the first hydrogen-powered tram in Görlitz by 2026, positioning itself as a frontrunner in the European tram industry. However, the situation has severely deteriorated since then.
In April, Heiterblick filed for insolvency, citing rising raw material costs and disrupted supply chains as primary factors. Although the company has contracts worth over EUR400 million secured, it has struggled to convert these long-term agreements into stable cash flow. The management plans to navigate the insolvency process independently, expressing confidence in the prospects for restructuring.
The crisis escalated dramatically when it was revealed in mid-July that Alstom, a major supplier, halted the delivery of tram bodies. Alstom indicated that Heiterblick had failed to meet essential contractual obligations. In response, Heiterblick emphasized its adherence to legal requirements during the insolvency process and is currently in negotiations with Alstom.
These tram bodies are crucial for fulfilling a substantial contract awarded in 2021, which involved a competitive bidding process against major industry players such as Siemens and Stadler. The contract includes the delivery of trams to three cities in Saxony: Leipzig, Görlitz, and Zwickau. Leipzig has ordered 25 XXL trams, with an option for an additional 130 vehicles, while Görlitz and Zwickau have also placed orders.
Despite the ongoing crisis, Heiterblick remains hopeful about meeting its contractual obligations. Although the company is considering implementing short-time work, production and development efforts continue. The trams designated for Leipzig are expected to be delivered between early 2026 and late 2027. Alstom has reportedly delivered three of the 25 tram bodies.
Heiterblick, which evolved from a workshop of the Leipzig public transport authority founded over a century ago, currently employs around 250 people and reported an annual revenue of EUR35 million. The company prides itself on ensuring that two-thirds of its value creation occurs within Saxony. The Saxon Ministry of Economic Affairs has expressed optimism regarding the insolvency application, suggesting that it could offer various avenues for comprehensive restructuring and realignment.