Failed restructuring Insolvency at German automotive supplier - 700 jobs lost

The German automotive supplier AE Group is shutting down operations for good. After a failed restructuring, around 700 employees will lose their jobs by the end of the year.

The German automotive supplier AE Group is facing the final end. Following insolvency under self-administration and a failed restructuring, the company will be completely closed at the end of the year. Around 700 employees will lose their jobs as a result.

Insolvency administrator Romy Metzger cited several reasons for the failure: the ongoing crisis in the automotive industry, high energy and raw material prices and geopolitical uncertainties. The AE Group specialized in aluminium die casting - an area that is closely linked to the development of the automotive industry. Despite an intensive search for investors, no solution was found for the company's continued existence.

Social plan and transfer company

At least a comprehensive social plan was agreed. This is financed by key customers who wanted to be supplied to the end. The agreement provides for bonuses and a transfer company to which over 90 percent of the employees will transfer. From January, they will receive six months of training and support in their job search - at 80 percent of their previous net salary.

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Representatives of IG Metall and the municipality of Gerstungen, where AE Group is based, expressed relief at the social cushioning, but described the loss as a heavy blow for the region. "The bottom line is that we have not saved the jobs," said Leif Gentzel from the trade union. Mayor Daniel Steffan spoke of significant economic consequences for the local infrastructure and tax base.

The end of the AE Group is one of a growing number of insolvencies in the German automotive supply industry - most recently companies such as Voit and Webasto were also affected.