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The common abatement in sales in the auto industry has claimed its abutting victim. On Monday, auto supplier Eisenmann filed for defalcation for itself and its subsidiaries. The family-owned aggregation in Baden-Württemberg employs 3,000 workers at 27 locations in 15 countries, 1,400 in Germany, best of these at its address in Böblingen abreast Stuttgart.
The defalcation was predictable; employees’ aftermost account salaries were allegedly not paid. Workers appear acquirements about the defalcation in the mail.
Eisenmann is one of the world’s arch manufacturers of acrylic shops and ablaze tunnels for affection ascendancy in the automotive industry. Its barter accommodate Italian affluence architect Lamborghini, California electric car architect Tesla and German architect Daimler AG. Eisenmann had accustomed an adjustment to body a bulb in Kecskemet, Hungary, for the German car manufacturer, but the branch amplification was abeyant because of poor sales figures.
On Tuesday, Daimler denied rumours, according to which this had played an important role in the Eisenmann insolvency, “Contrary to added reports, Daimler AG has not annulled any orders with the Eisenmann company. Daimler has been in acquaintance with Eisenmann’s administration for months and has responded to the appeal for support.”
Earlier this week, business circadian Handelsblatt appear that Eisenmann had “overstretched” itself in some above projects, which led to aerial losses in 2018. In addition, the aggregation had accustomed orders at betrayal prices, in the face of angry competition. This was now accomplishment its revenge.
Figures for 2018 are not yet available, but in 2017 sales had already angled from 862 to 723 actor euros. Now they are anticipation to accept collapsed alike further.
“We had to act bound and consistently here,” said Managing Director Michael Keppel, amenable for the restructuring. The Eisenmann ancestors and the lenders are acknowledging the alleged path. Two years ago, the ancestors had adjourned with a Chinese broker on the auction of the company. The talks were said to accept been burst off in autumn 2017 because account about the acquirement amount had drifted far apart.
The ancestors owners are now aggravating to use the defalcation activity to bankrupt shares, abate jobs and aggravate alive conditions. The aggregation says it is absorption on its amount business and wants “to advance the cardinal alteration of the Eisenmann Accumulation with the restructuring in the ambience of the defalcation proceedings, in adjustment to acknowledgment to a assisting business as anon as possible,” said Keppel.
Eisenmann is now attractive for a cardinal accomplice for its accustomed business in acrylic shops for the auto industry, Keppel said on Monday evening. “The aboriginal absorbed parties accept already contacted us.”
But it is still cryptic whether the Eisenmann Accumulation will be absolutely burst up. Competitors, like neighbouring Dürr AG, are already abrading their hands. The about traded aggregation had additionally started “restructuring measures” in the bounce due to weaker balance expectations.
Dürr had placed adverts to allure engineers, abnormally from Eisenmann. “We achievement to be able to bigger ample our vacancies now,” Handelsblatt quoted a Dürr agent saying. He additionally said, “If an automaker needs advice with advancing projects because of the Eisenmann bankruptcy, we are ready.”
Although Dürr had additionally issued a accumulation admonishing recently, it still expects a acknowledgment of amid 5.5 and 6 percent.
The Eisenmann defalcation casts a spotlight on the absolute automotive industry. Assembly is bottomward bristles percent worldwide. China, the better automotive bazaar in the world, which has been the abundant achievement of manufacturers so far, is now seeing a connected decline. In the aboriginal bisected of 2019, new car sales fell by 14 percent compared to the antecedent year.
Just two weeks ago, Opel had appear it was slashing addition 1,100 posts in Rüsselsheim, Eisenach and Kaiserslautern. Aftermost week, Japan’s Nissan accumulation appear a abridgement of 12,500 jobs worldwide. At the end of June, Ford appear 12,000 redundancies and bristles bulb closures in Europe by the end of 2029. Since the alpha of the year, General Motors has appear 14,000 layoffs, Volkswagen 7,000, Jaguar 4,500 and Tesla 3,000. And that is aloof the tip of the iceberg.
Last autumn, a abstraction by the Friedrich Ebert Foundation (FES), associated with the Amusing Democratic Party, assured that a hasty about-face of assembly to electro-mobility in the German auto industry would abuse 600,000 jobs and ruin a ample admeasurement of the suppliers.
Handelsblatt letters that in this situation, crumbling acquittal practices in the auto industry were additionally aggravating the situation. For beneath aqueous and abate companies like Eisenmann, this could advance to acquittal difficulties or alike insolvency.
Eisenmann is not the aboriginal and will not be the aftermost victim of the all-around bread-and-butter slowdown. Jobs are additionally actuality cut at added suppliers. 600 jobs at Marquardt are to be relocated abroad. Tire architect Continental affairs to abutting its bulb in Oppenweiler, and clarify specialist Mann und Hummel wants to cut 1,200 jobs worldwide.
The arch of the automotive supplier Mahle, Jörg Stratmann, has appear that about 400 jobs will be cut at the Stuttgart abject and the bulb in Öhringen will be bankrupt by the end of 2020, hitting 240 employees. Added bulb closures could not be disqualified out, he said.
Precision genitalia supplier Schaeffler appear the abridgement of 900 jobs months ago. Goodyear-Dunlop affairs to cut 1,100 jobs in Hanau and Fulda. Bosch is additionally planning massive job cuts. Best recently, Baden-Württemberg-based Weber Automotive, a aggregation with 1,500 workers, filed for bankruptcy.
According to the IG Metall barter union, in the southwest, the centre of the German automotive industry, one in two companies are adverse “cost reductions.” “The signs are axle up that abounding companies appetite to appearance the changes of the approaching with concepts from yesterday,” bounded IG Metall commune arch Roman Zitzelsberger said, alone in the aforementioned animation to comedy bottomward the calmness of the bearings adjoin workers. There was no acumen to acrylic things black, afterwards years of boom, the industry was now entering a “phase of normalization” the abutment official said.
However, IG Metall and its works board assembly are not agreeable aloof befitting workers quiet in the factories, they are themselves alive out affairs for amusing cuts and dismissals and administration them adjoin the workforce.
With its appeal for a “transformation short-time alive allowance”, the IG Metall is currently advancing accumulation redundancies in the automotive and basic accumulation industry. This was additionally the aim of the accumulation affirmation in Berlin at the end of June, which the IG Metall had alleged on the byword #FairChange. This was to accomplish bright to industry and government that the approaching attacks can alone be activated accordingly with the abutment and its 50,000 works board assembly and 80,000 boutique stewards.
In a flyer for this demo, the Sozialistiche Gleichheitspartei (Socialist Equality Party) wrote, “Workers about the apple accost the aforementioned bunch corporations and banking interests. Therefore, they charge not be divided. They can alone avert their rights and achievements by analogous their struggles internationally. This requires a breach with the unions and the accumulation of absolute activity committees. These charge adapt the action adjoin branch closures, layoffs and redundancies and body links with workers at added sites and countries.”
We alarm on all workers in the automotive and accumulation industries to adapt the aboriginal accomplish of this abhorrent by signing up for the WSWS Autoworker Newsletter.
This week, the WSWS appear its 75,000th article. Become a account donor today and accumulate up this basic work. It alone takes a minute. Thank you.
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