The German automotive industry is in a major crisis. While the big players are finding ways to survive in the market, the small companies that have been supplying them for years are quietly shutting down. One of them is Gerhardi Kunststofftechnik GmbH, the company that produced the Mercedes-Benz logo.
Gerhardi Kunststofftechnik was founded in 1796, survived two world wars, but not the current crisis. It started its journey more than two centuries ago with the production of metal products, and then entered the automotive industry as a supplier to the Mercedes-Benz star. However, the long-term decline in demand for their products led to the shutdown and layoff of 1,500 employees.
Other suppliers could face the same problem, such as French company Forvia SE, which announced it was cutting thousands of jobs, or Swedish battery manufacturer Northvolt AB, which is also in major financial trouble.
The crisis in Europe is getting worse and there is no way out in sight. VW recently announced that it will lay off 35,000 employees over the next six years and move production of the Golf Mk8 to Mexico, while other manufacturers have begun to reduce and shut down production at certain plants.
Source: Bloomberg
