Insolvency shock: AE Group in South Thuringia fights for employees
Insolvency shock: AE Group in South Thuringia fights for employees
in South Thuringia, where the economy is traditionally associated with the automotive industry, frightening messages cause excitement: the "AE Group", an essential automotive supplier, has filed for bankruptcy. Around 1,000 employees are affected, which further exacerbates the concerns about job security. The situation reflects a growing crisis in the entire industry because more and more companies are becoming financial difficulties.
The "Ae Group" has its headquarters in Gerstungen. According to the company, the company employs around 1,000 people at various locations, in Gerstungen alone there are around 600. The formal application for opening an insolvency proceedings in self -administration was submitted to the Meiningen District Court. This means that the company, led by the existing management, tries to get out of the crisis without an external insolvency administrator being set up. The “AE Group” receives support from the experienced renovation expert Martin Mucha.
causes of bankruptcy
The economic imbalance of the "AE Group" is undoubtedly due to the reduced demand in the automotive industry. Managing Director Rico Chmelik from the Automotive Thuringia (AT) industry association said that the situation for the suppliers in the region worsened massively in 2023. The continuing problems and above all the uncertainties about the future strategy of car manufacturers mean that companies hesitated to make new investments. In addition, consumers are unsettled, which has a negative impact on buying new cars.
The effects are already clearly noticeable: According to Chmelik in Thuringia, eight insolvency cases of suppliers were registered in the first four months of the year, with a total of 2020 jobs on the brink. The headlight manufacturer Marelli Automotive Lighting in Brotterode, where around 800 jobs are threatened, is the greatest case of location closure. The general uncertainty in the industry has also led to a throttling of car production in the coming year, which would result in additional negative consequences for the suppliers.
remaining wages and hopes for renovation
The "AE Group" has emphasized that the wages and salaries of employees are secured by bankruptcy money by the end of October, which gives some employees a little security in this uncertain time. However, the CEO, Christian Kleinjung, was confident that the company will remain survival by the bankruptcy proceedings and that the jobs can be secured. The company specializes in die casting and produces housing parts and engine components, among other things. Originally, a turnover of 150 million euros was planned for this year, which is now in question.
The developments in the "AE Group" are emblematic for the challenges that the Thuringian automotive industry is currently going through. According to the industry, around 80,000 employees are directly and indirectly employed in the automotive industry in Thuringia. To make matters worse, the annual turnover of the 690 companies in this industry is 9.3 billion euros, which underlines economic importance for the entire region.