Automotive Business Massive Job Cuts at Automotive Supplier
Editor: Nicole Kareta
In addition to the COVID-19 pandemic, the transformation of the automotive industry is currently causing many foundries problems. Now even a major automotive supplier like Nemak has to lay off numerous employees from its cylinder foundry in Wernigerode, Germany.
As the German news portal Volksstimme.de reports, Nemak will have to cut around 180 jobs at its cylinder foundry in Wernigerode, Germany, in the fall of next year. This accounts for around one third of the local workforce. Nemak Managing Director Frank Lehmann cited the transformation in the automotive industry as the reason. Concrete triggers for the restructuring are the trend towards electromobility, which is being reinforced by the regulatory requirements of the legislator, and social discussions of environmental issues. As a result, major Nemak customers such as Volkswagen, Audi, Porsche and Daimler are no longer placing new or follow-up orders. This affects the demand for cylinder heads and cylinder blocks, which are produced for the automotive industry in the foundry in Wernigerode. The company calculates with a reduced order volume by a third by 2022.
In addition, according to Lehmann, uneconomical orders with low unit numbers but high investment costs are leading to losses in production, which further worsen the current problems. Even if the corona pandemic has led to a worrying trend of insolvencies among foundries in the automotive sector, it is not the source of the problems, but merely the accelerator. According to Volksstimme.de, 700 employees were already on short-time working in 2019. In order to stabilize the company financially, 180 job cuts can now be expected. The details should be finalized by May 2021.
Declaration of consent
Naturally, we always handle your personal data responsibly. Any personal data we receive from you is processed in accordance with applicable data protection legislation. For detailed information please see our privacy policy.
Consent to the use of data for promotional purposes
I consent to NürnbergMesse GmbH, Exhibition Centre, 90471 Nuremberg, including any affiliated companies according to §§ 15 et seq. AktG (hereafter: NürnbergMesse) and Vogel Communication Group GmbH & Co. KG, Max-Planckstr. 7-9, 97082 Würzburg, including any affiliated companies according to §§ 15 et seq. AktG (hereafter: Vogel Communications Group) using my e-mail address to send editorial newsletters. I have accessed lists of the respective companies here for Vogel Communications Group
Newsletter content may include all products and services of any companies mentioned above, including for example specialist journals and books, events and fairs as well as event-related products and services, print and digital media offers and services such as additional (editorial) newsletters, raffles, lead campaigns, market research both online and offline, specialist webportals and e-learning offers. In case my personal telephone number has also been collected, it may be used for offers of aforementioned products, for services of the companies mentioned above, and market research purposes.
In case I access protected data on Internet portals of NürnbergMesse including any affiliated companies according to §§ 15 et seq. AktG or Vogel Communications Group including any affiliated companies according to §§ 15 et seq. AktG, I need to provide further data in order to register for the access of such content. In return for this free access to editorial content, my data may be used in accordance with this consent for the purposes stated here.
Right of revocation
I understand that I can revoke my consent at will. My revocation does not change the lawfulness of data processing that was conducted based on my consent leading up to my revocation. To declare my revocation I must use this contact form. In case I no longer wish to receive certain newsletters I have subscribed to, I can also click on the unsubscribe link included at the end of a newsletter. Further information regarding my right of revocation and the implementation of it as well as the consequences of my revocation can be found in the privacy policy, section editorial newsletter.
:quality(80)/p7i.vogel.de/wcms/1e/b4/1eb42b685d1a802eca24419557730cf3/0105226544.jpeg "This report provides an overview of commodity prices and inventories of aluminum and zinc in June 2022. (Source: gemeinfrei)")
:quality(80)/images.vogel.de/vogelonline/bdb/1964600/1964693/original.jpg "KS HUAYU expands its portfolio of e-mobility products. (gemeinfrei)")
:quality(80)/images.vogel.de/vogelonline/bdb/1964000/1964053/original.jpg "Bocar Group and GF Casting Solutions have signed an agreement to enter into a global cooperation. (GF Casting Solutions AG)")
:quality(80)/images.vogel.de/vogelonline/bdb/1962400/1962416/original.jpg "This report provides an overview of commodity prices and inventories of aluminum and zinc in May 2022. (gemeinfrei)")
:quality(80)/images.vogel.de/vogelonline/bdb/1955400/1955499/original.jpg "Many challenges face the traditional supplier industry. SJM shows how to meet the change in e-mobility. (gemeinfrei)")
:quality(80)/images.vogel.de/vogelonline/bdb/1951600/1951659/original.jpg "Innovative multi-plate technology for die casting. (BMW Group)")
:quality(80)/images.vogel.de/vogelonline/bdb/1938000/1938025/original.jpg "YXLON UX50 is also suited for the particular requirements of e-mobility. (gemeinfrei)")
:quality(80)/images.vogel.de/vogelonline/bdb/1936300/1936386/original.jpg "Sustainability is becoming increasingly important for the die casting industry. (gemeinfrei)")
:quality(80)/p7i.vogel.de/wcms/e2/b7/e2b75c43aa17e8fba9af8cc488482684/0105336973.jpeg "ItalPresseGauss launches a new generation of Toggle Free HPDC machines. (Source: ItalPresseGauss S.p.A.)")
:quality(80)/p7i.vogel.de/wcms/ac/67/ac674ce407d17b47f4ad53085a93626a/0105105217.jpeg "Automotive gantry machine (Source: Grenzebach)")
:quality(80)/p7i.vogel.de/wcms/8b/89/8b89c9e3203481dca7c21c9a85174d96/0105104645.jpeg "Following the test phase, the heating stations in the foundry are now replaced by electrically operated stations. (Source: BMW Group)")
:quality(80)/p7i.vogel.de/wcms/e4/0c/e40c97cec63d79cff20ae296d3e037b4/0105078726.jpeg "The partnership with Bühler AG allows Handtmann to produce even larger structural parts, such as large battery housings for electric vehicles (Source: gemeinfrei)")
:quality(80)/p7i.vogel.de/wcms/7a/bb/7abb477467b8539e5f607c15bc847f10/0105127370.jpeg "MAXImolding! Technology GmbH will present their innovations at the EUROGUSS trade fair. (Source: gemeinfrei)")
:quality(80)/p7i.vogel.de/wcms/00/4e/004ee5a78d6cb2fb491ba0aa7134025a/0105078472.jpeg "How sustainable is the die casting industry? (Source: gemeinfrei)")
:quality(80)/p7i.vogel.de/wcms/be/c2/bec2279d47cafc5b4bf9af1a274c146d/0105008501.jpeg "KS HUAYU AluTech will showcase their casting expertise at EUROGUSS 2022 (Source: Rheinmetall AG)")
:fill(fff,0)/p7i.vogel.de/companies/61/76/6176976ae4cf1/logo-englisch.jpeg "logo-englisch (https://portal.handtmann.org/sites/Geschaeftsbereiche/Konzern/Holding/Marketing/Logo/Forms/Thumbnails.aspx?useFiltersInViewXml=1&FilterField1=FileType&FilterValue1=jpg&FilterType1=Computed&id=%2Fsites%2FGeschaeftsbereiche%2FKonzern%2FHolding%2FMarketing%2FLogo%2FLogo%20Englisch%2Ejpg&parent=%2Fsites%2FGeschaeftsbereiche%2FKonzern%2FHolding%2FMarketing%2FLogo)"){kind=logo}
:fill(fff,0)/p7i.vogel.de/companies/5d/cc/5dcc20e49ad76/fondarex-logo.jpg "fondarex_logo.jpg (http://promove.ch/de/content/fondarex-sa)"){kind=logo}
:quality(80):fill(efefef,0)/images.vogel.de/vogelonline/bdb/1750100/1750116/original.jpg "Cover_Whitepaper_The top 100 automotive suppliers of 2019")
:quality(80)/images.vogel.de/vogelonline/bdb/1918400/1918474/original.jpg "It is now possible to produce standard tool steel H11/H13 using metal 3D printing. (TRUMPF GmbH + Co. KG)")
:quality(80)/images.vogel.de/vogelonline/bdb/1893400/1893454/original.jpg "Nemak Reports 3Q21. (gemeinfrei)")