In Darmstadt, a previous industry promise was reversed at the end of March. BorgWarner Akasol launched a severance program after the company specified the elimination of 120 production jobs, while negotiations continued regarding further cuts at the development center. The triggers were declining orders from its two most important customers, lower call-offs at the end of the year, and the company-wide restructuring. The contrast with the previous expansion strategy is particularly striking, as the Darmstadt site, with its “Gigafactory 1,” was considered a symbol for expanding battery production for commercial vehicles. Consequently, uncertainty is growing significantly for employees, the plant, and the technology hub. (faz: 27.03.26)
From a Future Project to a Restructuring Case
Just a few years ago, Akasol in Darmstadt represented a new beginning. In 2021, the company opened its new battery factory there and announced ambitious expansion plans. Initially, production was projected to reach up to 1 gigawatt-hour, later 2.5 gigawatt-hours, and even more if demand was high. Therefore, the site was considered one of the most visible battery projects for electric buses and commercial vehicles in Germany.
With the acquisition by BorgWarner, these plans seemed to be further secured. The US corporation wanted to expand its electrification business and relied on the technology from Darmstadt. At the same time, expectations rose that the specialist company would become a sustainably growing industrial enterprise. The break is all the more jarring because, instead of expansion and ramping up production, severance packages and job cuts now dominate.
The core of the problem lies in orders and capacity utilization
According to sources close to the negotiations, management made its decision due to declining orders from its two main customers. The IG Metall union also reported that all temporary workers have already been laid off due to reduced customer demand. This demonstrates how severely capacity utilization is already under pressure, while the company’s restructuring continues. Therefore, it’s not just about individual jobs, but about the economic viability of the entire plant.
BorgWarner had already announced a major restructuring plan in the fall of 2025. According to the IG Metall union, around 40 percent of engineering jobs and 45 percent of factory jobs were slated for elimination at the time. Across both the Darmstadt and Langen locations, this reportedly amounted to almost 350 jobs out of approximately 800 employees. Now, at least a concrete figure is available for production, while the future of the development department remains uncertain.
The very contrast to the mega-factory is what makes this case so sensitive
The current staff reduction therefore carries more weight than a typical round of cost-cutting. This isn’t just any factory shrinking, but a site that was developed as part of the industrial transformation of transportation. While politicians and companies once presented the new factory as proof of technological strength and new value creation, the loss of expertise is now taking center stage. This also damages the narrative that future technologies in Germany automatically lead to stable employment.
For Darmstadt and the surrounding region, this is a serious signal. The site combines production and development, and it also represents a sector considered strategic in Europe. When temporary workers are laid off, followed by permanent positions, and further negotiations remain open, doubts about the long-term prospects grow. This is precisely the true gravity of the situation: within just a few years, the ambitions for a mega-factory have transformed into a battle to save jobs.