Crisis in the auto industry: bankruptcies threaten jobs in Bavaria!

Crisis in the auto industry: bankruptcies threaten jobs in Bavaria!

The German auto industry is currently under considerable pressure, which is increasingly concerned with suppliers. On April 15, 2025, the mechanical engineering company DTS from the Upper Palatinate reported bankruptcy, which plunges 170 employees into uncertainty. This bankruptcy was made by Dr. Michael Burkert accompanied as a temporary insolvency administrator, the main goal of which is to secure business operations and to find a way out of the crisis. As a result, the wages of the employees concerned are protected by the bankruptcy money of the Federal Employment Agency.

The bankruptcy of DTS is not isolated, but part of a larger trend. The reasons for the economic difficulties are increasing energy and raw material costs that have not yet been passed on to customers. DTS has focused on the production of components for various industries, with the focus on the automotive industry. This crisis shows how sensitive the entire supplier structure can react through external factors.

growing insolvency rates

The bankruptcy of DTS reflects a worrying development in the German economy. A report by The Indat shows that the insolvency from large companies in 2023 to a record value of 364 climbing, which corresponds to an increase of 31 percent compared to the previous year. The industries of automotive suppliers, metal goods manufacturers and mechanical engineers are particularly affected. This increase in bankruptcy is the result of a lack of future confidence and increased uncertainty in the economy.

Another supplier, WEBO GmbH from Baden-Württemberg, has also filed for bankruptcy. Although webo was founded in 2008 and once employed up to 100 employees, the company suffers from massive liquidity problems. Despite full order books, the company can only be continued through a renovation concept. The automotive industry is clearly affected.

positive trends despite challenges