Eissmann Group Automotive Aims for Restructuring in Insolvency Proceedings

The renowned automotive industry supplier, Eissmann Group Automotive from Swabia, finds itself compelled to file for insolvency. Under significant pressure from economic difficulties, the company submitted requests to initiate insolvency proceedings for the parent company as well as its most important German subsidiaries to the Tübingen District Court. A company spokesperson emphasized that the proceedings are expected to start on the first of May. The company’s management insists on maintaining operations at the main site in Bad Urach and at the facilities in Gera and Pirna to minimize disruption to business operations. Eissmann had employed nearly 1,000 staff members at these plants, who are now informed about the current situation. These locations gained particular importance for the company through the acquisition of Dagro in Thuringia in 2013 and the integration of Minda KTSN in Saxony in 2021. Despite extensive efforts, the company's leadership was unable to stabilize the margin for maneuver due to rising costs for materials and energy as well as higher interest rates. For this reason, they view the insolvency proceedings as an opportunity for comprehensive restructuring and rehabilitation of the German companies within the Eissmann Group. In this context, the company's management speaks of a new chapter in the company's history. The overall group, which employs 5,000 people worldwide, was able to generate a revenue of 450 million euros in the last fiscal year. It is important to note that the insolvency applications are limited exclusively to the German entities and do not affect the international locations. Founded in 1964, the company has made a name for itself with quality products for vehicle interiors and supplies both German and international car brands. This decision to initiate insolvency proceedings reflects the increasingly demanding conditions in the supplier industry.