German car component supplier WKW Automotive has declared bankruptcy. This is reported in a WKW press release.
WKW supplies decorative slats and other spare parts for VW, Mercedes and BMW cars. The company operates production sites in Felbert and Wuppertal with a staff of 3,800 employees.
WKW has been in a difficult financial situation for many years and warned of possible bankruptcy in 2022. Banks and customers were ready to make concessions, and the administration of the state of North Rhine-Westphalia even issued a guarantee. However, the planned restructuring was too slow, and the crisis in the German automotive industry led to the bankruptcy of the company.
Last week, Volkswagen AG (VW) announced the likely curtailment of production in Germany, reducing staff by 15 thousand people. In addition, Walter Klein GmbH & Co. KG went bankrupt, and the Erwin Lutz concern, which has been producing springs for cars since 1966, announced the future termination of its activities.
The crisis in the German automotive industry was caused by an unjustified increase in industrial capacity and a drop in competitiveness. Attempts by VW and the entire European car industry to compete with Chinese brands have been unsuccessful. In addition, the company is subject to state regulation, as a fifth of the shares of the company in Wolfsburg belong to the administration..
Volkswagen AG is a German automobile concern with headquarters in Wolfsburg (Germany). Volkswagen Aktiengesellschaft, known by the acronym VAG, heads the concern, which at the end of 2021 included more than 1,500 subsidiaries, joint ventures and partnerships. The company produces cars under the brands Volkswagen, Audi, SEAT, Skoda, Bentley, Bugatti, Lamborghini, Porsche, Scania, MAN and Navistar, as well as Ducati motorcycles. The controlling stake in Volkswagen AG belongs to Porsche Automobil Holding SE.
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