The supplier of Mercedes-Benz branded “stars” has declared bankruptcy. The German company Gerhardi Kunststofftechnik GmbH failed to cope with the challenges faced by the modern European automotive industry due to the fall in demand for electric vehicles. The company, founded in 1796, survived two world wars but went bankrupt in 2024. This was reported by Bloomberg, according to UNN.
Details
Gerhardi has declared bankruptcy after a prolonged drop in demand for its products. What will happen to its 1,500 employees is currently unknown. The company began its journey more than two centuries ago with the production of metal products, and then entered the automotive industry and supplied star emblems for Mercedes-Benz sedans.
Germany's Gerhardi Kunststofftechnik GmbH has survived Napoleon's invasion, the Great Depression, and two world wars. But the current downturn in Europe's automotive industry has brought the plastic manufacturer to its knees
It is noted that last month, after a long period of rising costs and falling demand, the company declared bankruptcy, leaving 1,500 of its employees unemployed.
Other suppliers are also forced to cut production amid falling car sales. For example, the French Forvia SE (a supplier of parts for Volkswagen and Stellantis) is cutting thousands of jobs, the German Webasto SE has accumulated debts worth a billion euros, and the large Swedish battery manufacturer Northvolt AB is also experiencing financial difficulties. With further layoffs at Volkswagen, Stellantis, and Ford, the situation is sure to get worse.
Interestingly, Gerhardi is not the only manufacturer of Mercedes-Benz stars to go bankrupt in recent years. In 2022, this happened to BIA Forst. It produced emblems that were installed vertically, for example, on the S-Class.
Recall
Europe's largest car manufacturer Volkswagen is planning to close at least three German plants, cut tens of thousands of jobs, and reduce wages by 10 percent.