In Germany, once the most fertile land for the global automotive industry, a large number of auto parts suppliers are being swept up by a large-scale “bankruptcy wave”.
Recently, the latest data released by consulting firm Falkensteg showed that in the first half of 2024, 20 auto parts suppliers in Germany with annual revenue of more than 10 million euros filed for bankruptcy, a year-on-year surge of 60%. It is worth noting that this phenomenon is in sharp contrast to the bankruptcy rate of only 2% in 2023.
This is not only thought-provoking, but also with the transformation of the automotive industry worldwide, under the trend of new energy, where will the auto parts companies that have been rooted in the “old industrial base” represented by Germany go? Who will have the right to speak in the automotive supply chain?
This reflects the plight of traditional parts companies in the transformation of the automotive industry.
The wave of layoffs has also swept the industry. Many German auto parts giants such as Continental, Bosch, and ZF have announced plans for large-scale layoffs to adapt to industry changes. Smaller suppliers are struggling on the brink of bankruptcy. Companies such as Allgaier and Eissmann have filed for bankruptcy.
Against this backdrop, Chinese core parts companies are accelerating their layout in Europe, leveraging their competitive advantages in manufacturing and cost to actively expand their market share in Europe, prompting European automakers to reconsider their partnerships. CATL, Guoxuan High-tech and other companies have established battery production bases in Germany to provide localized supply to European automakers and improve supply chain efficiency.
The industry predicts that as the transformation accelerates, the number of bankruptcies of German auto suppliers may continue to increase in the second half of the year, while the competitiveness of Chinese companies in the European market will be further enhanced.
Post time: Feb-14-2025
