Brose’s Economic Crisis Sparks Concerns Over Würzburg Plant Closure
The global automotive industry is grappling with a severe economic crisis, and German automotive supplier Brose is implementing austerity measures to navigate these challenges. However, these measures have raised concerns among employees and local officials about the potential closure of the company’s Würzburg plant, putting approximately 1,400 jobs at risk.
A company spokesperson confirmed that the board of directors is considering consolidating its three Franconian locations, including Würzburg, Bamberg/Hallstadt, and Coburg. The board is evaluating the advantages and potential synergies of reducing the number of sites to two, with a focus on maximizing economic efficiency. If deemed necessary, the Würzburg plant may be closed due to its ongoing financial deficit.
In the event of a closure, Brose has indicated that it will offer transfers to administration staff. The board and management team will make a final decision once the evaluation results are available.
In December, Brose announced cost-cutting measures, including a 20% reduction in indirect personnel expenses, alongside plans to reduce the number of its sites. Michael Stoschek, grandson of the company’s founder, informed the works council chairmen of the Franconian locations about the potential closure plans last week. Stoschek is the current chairman of the board of directors, having recently stepped back from active management. Brose employs approximately 32,000 people worldwide.
The news of the potential closure has sparked concern among local officials and union representatives. Würzburg’s mayor, Christian Schuchardt (CDU), has appealed to Stoschek to reconsider the proposed reductions, emphasizing the social responsibility towards employees and their families. He warned that the loss of Brose, one of the city’s largest employers, would have a significant impact on Würzburg.
"The loss of such a significant employer is a slap in the face," said Norbert Zirnsak, First Representative of IG Metall Würzburg. He stressed the importance of Brose’s jobs for the region’s economic stability. Yves Weinberger, Chairman of the Works Council at Brose Würzburg, echoed these sentiments: "The workforce has constantly delivered exceptional performance and demonstrated innovative strength in recent years. Instead of plans to close the site, we need a clear signal that Würzburg has a future."
Brose’s financial difficulties stem from a combination of factors, including the ongoing semiconductor shortage, rising raw material prices, and the global economic downturn. The company is not alone in facing these challenges, as many automotive suppliers and manufacturers are struggling to adapt to the rapidly changing market landscape.
The potential closure of the Würzburg plant has raised questions about the future of industrial employment in the Franconian region and beyond. Brose is a major employer in the area, and its closure would not only impact its own employees but also the wider supply chain and local economy.
The company’s decision will ultimately depend on the results of the ongoing evaluation and the economic viability of its Würzburg plant. However, the concerns raised by employees and local officials highlight the challenges facing the automotive industry and the need for innovative solutions to navigate the current economic crisis and ensure the long-term sustainability of industrial employment.
