Gerhardi Kunststofftechnik GmbH, based in Germany and known for manufacturing emblems for Mercedes-Benz, has filed for bankruptcy, autojosh.com reported. This decision stemmed from a reduced demand for their products amid a broader crisis affecting the European automotive sector. Reports indicate that Gerhardi Kunststofftechnik GmbH struggled to navigate the obstacles presented by today’s European automotive landscape, particularly due to the falling demand for electric vehicles. Founded in 1796, the company weathered two world wars but ultimately went bankrupt in 2024.
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German start-up Lilium, known for its innovative flying taxi technology, has successfully avoided bankruptcy by securing a new investor, The Munich Eye reported. The Mobile Uplift Corporation GmbH, a consortium of investors from Europe and North America, has agreed to take over the flight taxi developer. A purchase agreement has been signed for the operational assets of Lilium GmbH and its subsidiary, Lilium eAircraft GmbH.
German multinational machinery maker Manz announced from its Reutlingen headquarters on Wednesday that it is to apply for insolvency, DPAInternational reported. The company's executive board took the decision on account of inability to pay its bills and high debts. The application is to be made in the next few days. The company's lenders had decided not to come up with additional funding following intensive talks between the board and investors, it said. The board was continuing to talk to potential investors, it added.
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Germany's economic downturn eased slightly in December but business activity still contracted for a sixth month running, according to a survey published on Monday, Reuters reported. The HCOB German flash composite Purchasing Managers' Index, compiled by S&P Global, rose to 47.8 from 47.2 in November, but remained in contraction territory. Analysts polled by Reuters had forecast a reading of 47.8. The business activity index for Germany's services sector rose to 51.0 in December from 49.3 in November, beating the forecast of 49.4. Any reading above 50 indicates expansion.
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Germany’s economy will hardly grow in 2025 after shrinking again this year, according to fresh forecasts from Bundesbank, Bloomberg News reported. Gross domestic product will fall by 0.2% in 2024, it said Friday — slashing a June prediction for 0.3% growth. Output will expand by just 0.2% in 2025, rather than the 1.1% seen earlier, and could even fall if US trade tariffs materialize. “The German economy is not only struggling with persistent economic headwinds, but also with structural problems,” Bundesbank President Joachim Nagel said, highlighting the industrial sector in particular.
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Germany’s economy is at a crossroads after treading water for five years, and will only recover should the country make radical structural changes, according to a leading economics research group, the Wall Street Journal reported. The Ifo Institute said that Germany’s economy would shrink 0.1% this year, and only grow 0.4% in 2025, unless the government implemented pro-growth policies that included lowering corporate taxes, lessening bureaucracy, improving infrastructure and boosting the labor supply.
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Solarmax, a German inverter and battery storage systems specialist with more than 30 years of experience, is facing insolvency. Last week, a German district court opened preliminary insolvency proceedings against the Bayern-based company, PV-Magazine.com reported. The Neu-Ulm district court judges appointed Michael Pluta of Pluta Rechtsanwalts GmbH as preliminary insolvency administrator, as his law firm published on Friday. A statement from Pluta said Solarmax was experiencing financial difficulties due to market conditions.
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Recaro has been rescued from bankruptcy. The financial lifeboat comes courtesy of Proma Group, an Italian automotive parts supplier, which yesterday announced that it had signed an investment agreement to take over operations for the world's oldest seat maker, Car and Driver reported. Proma said in a press release that its investment will allow Recaro Automotive, which is based in Germany, to continue operations amidst a transitional phase. That will lead to a European relaunch in January, when OEM production will move to Italy.
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German industrial production fell again in October as the sector continued to struggle, with swathes of layoffs and potential trade tariffs threatening to compound the problem, the Wall Street Journal reported. Output dropped 1.0% on month in October, German statistics agency Destatis said Friday, weaker than the 1.0% uptick expected by economists in a poll compiled by The Wall Street Journal. Production declined by 2.0% in September, and by 0.4% in the three months to October.
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German manufacturing orders fell in October on lower automotive orders, continuing the trend of weak signals for the country’s troubled industrial sector, the Wall Street Journal reported. Factory orders slipped 1.5% on month in October, according to data published Thursday by Germany’s statistics agency Destatis. This was slightly less weak than economists’ expectations for a 2.0% decline, according to a Wall Street Journal poll. Orders for the motor industry dropped 3.7%, amid concerns about the health of the sector.
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