crisis
Automotive supplier Webasto brings renovators to the board
A number of German auto suppliers have fallen into crisis. For another company, the usual cost-cutting measures are not enough.
The automotive supplier Webasto has found itself in such a difficult situation that an external reorganizer has to lead the reorganization. Management consultant Johann Stohner will be appointed to the board as Chief Restructuring Officer, Webasto announced. By the beginning of the second quarter, the enlarged board of directors wants to work out measures together with the supervisory board and the works council.
The Webasto Group, headquartered in Stockdorf just outside Munich, primarily produces heating, cooling and ventilation systems, sliding and panoramic roofs as well as battery systems for electric cars. CEO Holger Engelmann had already announced an “optimization program” with extensive job cuts last spring due to a sharp decline in profits. With the renovator Stohner on the board, Webasto now basically wants to work on the structures. A reduction in production and development capacities as well as in organization is to be expected, as can be seen from the communication. Webasto also wants to “sharpen” its product offering.
Restructuring instead of optimization
At the end of 2023, Webasto still employed 16,000 people worldwide. In 2024, the company closed two Chinese plants, among other things. The optimization program is no longer sufficient. As Webasto has now announced, a stabilization agreement was concluded with important creditors on December 23rd. “Wirtschaftswoche” had reported on restructuring and debt restructuring, but the company has not yet officially commented on this.
According to Webasto, the stabilization agreement secures the necessary financial framework until May 31, 2025, after which the medium and long-term loans will also be reorganized. A restructuring report commissioned from an independent consulting firm should be available by the end of March 2025.
Business in China is turning from a growth driver into a crisis point
CEO Engelmann had relied heavily on business in China in good years, but the German car industry as a whole has run into major difficulties in its most important sales market. Chinese manufacturers have now outpaced their German competition with their electric cars.
Financially, a number of suppliers have been hit even harder than the actual car manufacturers. Important suppliers not only produce parts, but have also been significantly involved in innovations in recent years. A number of well-known companies, including Bosch and Continental, have announced massive savings programs.
dpa
Source: Stern
