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Prinz & Co. Stahlrohre, a German manufacturer of precision steel pipes and automotive parts with a 130-year history, recently filed for bankruptcy.The company could not withstand the prolonged slump in Europe's auto industry, sharp increases in raw material and energy prices, and weak summer sales. Analysts widely view this as a snapshot of the reality facing Germany's auto industry amid its long-term decline.
Founded in 1896, this family-owned enterprise was a leading supplier of precision steel pipe components for automotive seats, airbags, and hydraulic systems to markets worldwide. Christian Holzmann, the interim bankruptcy administrator, diagnosed that this bankruptcy signals that liquidity crises facing Germany's small and medium-sized parts suppliers have reached a critical point amid the prolonged downturn in Europe's auto industry.
As Germany's auto industry slump continues, large-scale job cuts and a chain of bankruptcies among downstream parts suppliers are becoming reality. In an interview with local media RND, Hildegarde Müller, president of the German Association of the Automotive Industry (VDA), projected that 225,000 jobs in Germany's auto industry will disappear over the next decade leading up to 2035.
This figure is 35,000 higher than originally expected when measured against the industry peak in 2019. Since 2019 through last year, 100,000 jobs have already vanished. As of last year, the number of people employed in Germany's auto industry, including parts suppliers, stood at 726,000. According to a release from the German Automotive Management Institute (CAM), more than 140,000 jobs have already evaporated compared to the 2018 peak, recording the lowest level since relevant statistics began in 2005.
The main causes identified for the employment decline include Germany's high tax rates, soaring energy costs, rising labor expenses, excessive bureaucracy and regulatory burdens, and the European Union's (EU) rapid shift to electric vehicle policies. VDA emphasized that operating electrification policies more flexibly could preserve 50,000 jobs in Germany. The restructuring pressure within the finished vehicle industry is rapidly spreading to basic parts supply chains.
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*This content was translated by AI.
