Supplier Crisis Automotive supplier Schaffler to shut down Luckenwalde location

Germany — German automotive supplier Schaffler announced that the company plans to gradually close its location in Luckenwalde, Germany. The group cited failed negotiations with employees and an increasingly challenging market environment in automotive supplier industry as reasons for this decision.

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Automotive and industrial supplier Schaeffler is continuing to implement the structural measures announced in September 2020. The company was unable to achieve its objective announced back then of selling and partially relocating the Automotive Technologies division plant in Luckenwalde despite negotiations between employer and employee representatives over a period of 15 months. As a result, the location, whose product and component portfolio is at the end of its lifecycle, will be gradually closed and its activities relocated by July 2023. Negotiations on a reconciliation of interests will be started immediately to provide employees with clarity as soon as possible, the company announced.

Matthias Zink, CEO Automotive Technologies of Schaeffler, states: “We have held extensive discussions with the local employee representatives over the past 15 months. Although both sides did their best we did not come to a common solution in the end, much to our regret.”

In the context of its transformation toward electric mobility, the Automotive Technologies division is currently facing a particularly challenging market environment that makes structural adjustments and consolidation of locations essential.

The planned closure in Luckenwalde is part of the measures agreed upon in September 2020 that mainly affect twelve of the company’s German locations. At eleven locations, constructive discussions with employee representatives resulted in agreements on capacity reduction and consolidation.

“The closure of the Luckenwalde location is painful for all involved. Our focus now is on coming to the most socially responsible solution possible in negotiations with the employee representatives for Luckenwalde that are due to start as soon as possible,” said Corinna Schittenhelm, Chief Human Resources Officer of Schaeffler.

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