Insolvency wave: German companies are fighting for survival!

Insolvency wave: German companies are fighting for survival!

The uncertainty in the German economic landscape remains high, especially in the automotive and mechanical engineering industry. On April 15, the Upper Palatinate Mechanical engineer DTS reported bankruptcy, which brings the future of 170 employees in great danger. Dr. Michael Burkert was appointed preliminary insolvency administrator to secure business operations. The bankruptcy is primarily due to increased energy and raw material costs that the company could not pass on to its customers. According to Merkur , dts as an important supplier for different industries, but the signals from the automotive industry and mechanical engineering are up to Sturm.

Despite a slight increase in the order stock in German industry by 0.3 % in February, future prospects look bleak. This positive development is primarily supported by the automotive industry and mechanical engineering, while the world trade organization predicts a decline in global trade. These uncertainties are also strongly related to the trade conflict under US President Donald Trump. Volkswagen, on the other hand, reports on strong demand and even plans special classes in his main work in Wolfsburg, which illustrates the contradiction in the industry.

growing bankruptcy - an alarming trend

In 2023, the number of bankruptcies at large companies increased by 31 % to 364 cases with sales of over 10 million euros. This is the highest value in the past five years, such as The Indat reports. Mechanical engineering and automotive suppliers in particular are under pressure, with 56 bankruptcies in the automotive industry and an increase of 65 % in the area of suppliers. In total, the insolvent companies implemented 27.4 billion euros, 44 % more than in the previous year.

Trust in the economy is fragile because political uncertainties and international trade conflicts pose additional challenges for companies. Another increase in bankruptcies by 20 to 25 percent is also forecast for 2024, which is due to structural problems and a lack of planning security.

long -term perspectives and effects

The increasing number of bankruptcies that climbed to a total of 21,812 cases in Germany in 2024 reflects the current economic challenges. This is around 4,000 more than in the previous year and an increase of 22.4 %, as ifm bonn . The reasons for this increase are diverse and range from crises from the past to persistent financial difficulties in various industries.

Overall, the climate of uncertainty remains in the German economy. Companies are forced to adapt to potential restructuring, personnel reduction and possible location closings. The next few months will be crucial to observe whether the situation can stabilize or whether other companies will follow that have to close their gates.