The AE Group is facing its final closure. The long-established automotive supplier is ending production in Thuringia and Hesse. Approximately 650 jobs will be lost as a result. The planned restructuring failed, and an investor solution failed to materialize. The bitter consequence: a complete factory closure by the end of the year.
Hopes for AE Group’s rescue dashed
As recently as February 2024, AE Group initiated insolvency proceedings. The goal was to attract investors through international inquiries. However, discussions with around 160 potential investors yielded no results. A potential buyer expressed interest but did not present a viable financing plan. This also ended the company’s last chance of continuing as a going concern.
A statement read: “AE Group AG and its production companies in Gerstungen and Nentershausen must cease operations at the end of the year and will be wound up.” This brings to an end the story of an automotive supplier that has manufactured engine and transmission parts for decades.
Figures and Locations at a Glance
The Gerstungen site in Thuringia currently employs 450 people, plus 94 employees in the holding company. The plant in Nentershausen in Hesse has 134 employees. All affected employees have been offered a transfer to a transfer company. There, they will receive wages and training opportunities for six months.
This includes a social plan. Insolvency administrator Dr. Romy Metzger reached an agreement with the works council, IG Metall, and management on a reconciliation of interests. While this loss does not replace permanent jobs, it at least mitigates the immediate consequences of the factory closure.
Causes of the insolvency
The insolvency administrator emphasized: “The fact that there was no restructuring solution was not due to the AE Group’s technological expertise, and certainly not due to its truly outstanding employees.” Rather, the main reasons were exploding energy and raw material costs, geopolitical uncertainty, and a difficult investment environment in Germany.
The AE Group’s insolvency thus reflects the crisis facing many suppliers. Rising production costs and declining order volumes are burdening the entire industry. Medium-sized companies, in particular, are increasingly struggling to survive.
Consequences for the Industry and Employees
The loss of 650 jobs not only affects the regions of Hesse and Thuringia. The entire German automotive industry is also suffering, as more and more skilled workers are leaving. At the same time, the transition to electromobility requires significant investments that many medium-sized automotive suppliers can no longer manage.
The AE Group’s factory closure demonstrates how tense the situation is. Whether other companies will still find investors remains uncertain. For the AE Group, however, the chapter is closed: The automotive supplier will permanently close its plants at the end of the year.