Major Auto Supplier Files for Bankruptcy, Endangering 500 Jobs

The ongoing challenges in the automotive industry have taken a severe toll, with a prominent auto supplier in Germany announcing its bankruptcy, putting 500 jobs at risk. The Boryszew Kunststofftechnik Deutschland GmbH, based in Gardelegen, has filed for insolvency, as confirmed by the appointed provisional insolvency administrator, Silvio Höfer from Anchor Rechtsanwaltsgesellschaft. Discussions are currently underway with company management and employee representatives to address the situation.

While the specific reasons behind the bankruptcy have not yet been fully disclosed, the company has reported significant declines in sales and liquidity issues. The auto industry as a whole faces increasing pressure, particularly as the anticipated growth in electric vehicle sales has not materialized as expected. The impact of new tariffs imposed by the U.S. government on goods from Mexico and Canada further complicates the landscape for German automakers and their suppliers, many of whom operate manufacturing facilities in Mexico to produce competitively priced vehicles for the U.S. market.

As a key player in producing plastic injection molded components for the automotive sector, Boryszew Kunststofftechnik Deutschland GmbH serves notable clients, including the Volkswagen Group. Despite the insolvency filing, production is reportedly continuing at the Gardelegen facility, and employees' salaries are secured by insolvency payments for the next three months.

The firm is a subsidiary of the Polish Boryszew Group, which is active in the plastics industry at an international level. This latest insolvency is part of a worrying trend within the automotive supply chain, as the consulting firm Falkensteg has reported a record number of large-scale bankruptcies in the last quarter of 2024. In total, 64 companies with revenues exceeding EUR20 million filed for insolvency, marking a 31% increase compared to the previous quarter and the same period last year, which saw 49 companies enter bankruptcy.

Among the most affected sectors, automotive suppliers led with 13 insolvencies, followed by manufacturers of metal products and real estate companies, each experiencing 11 bankruptcies. This trend underscores the growing challenges facing the automotive industry, particularly in the context of shifting consumer preferences and economic pressures.