Glimmer of Hope for Eissmann Employees: Insolvency without Job Cuts

Amidst the insolvency proceedings of Eissmann Automotive Deutschland GmbH, the insolvency administrator Holger Leichtle is sending positive signals from the Stuttgart law firm: The preservation of the approximately 1,000 jobs at the German branches of the automotive supplier is temporarily secured. There are no factory closures imminent; on the contrary, the foundation for a hopeful future is being laid through an ongoing investor process. Around 100 potential investors have been contacted and to date, reports indicate a positive response. Eissmann operates its largest German sites in Gera, Pirna, and Bad Urach with an impressive number of employees, whose professional fate was hanging in the balance due to the insolvency filed for the German companies in March. The company's internationally positioned entities, which employ approximately 5,000 people globally, are unaffected by this process. The formal insolvency proceedings were initiated in May by the competent local court of Tübingen, which set the processes in motion and thus reinstated the responsibility for the continuation of wage payments back to the automotive supplier. Since then, employee salaries are no longer managed through insolvency funds; operations continue unhindered. How long the insolvency proceedings will last remains uncertain at the moment. Negotiations are still in the initial stages, but the goal is clearly defined: the production sites should be transferred in their entirety to a new owner. An exact number of interested parties is expected as soon as binding offers make their way to the office of the insolvency administrator. The company, founded in 1964, is a well-established player in the supplier industry and provides national as well as international automotive manufacturers with high-quality interior components. Despite the challenging economic waters, the future of the Eissmann Group seems to be gaining momentum again through this process.