German Manager Magazine: GKN Driveline: Auto supplier closes plant in Zwickau, 800 jobs at risk002257

The automotive supplier GKN Driveline wants to close its plant in Zwickau with more than 800 employees for the foreseeable future. The company announced on Wednesday that the location in the Mosel district could no longer be maintained in the long term. It is planned to relocate production to other locations from the second half of the year. A period of two years is planned for this.

The company manufactures cardan shafts for cars in Moselle. The plant was founded in 1981 during the GDR era and is located in Zwickau right next to the car factory Volkswagen. The reason for the planned plant closure in Saxony was structural changes in the automotive industry. Against this background, the utilization of the plant will decrease significantly in the coming years.

the IG Metal accuses the company of Germany has further locations in Offenbach, Kiel and Trier to relocate production piecemeal to Eastern Europe. The union announced opposition to the plans. It was bitter for the employees “that their jobs should be sacrificed for profit,” said works council chief Jörg Kirsten. “Because while the plant in Mosel is to be closed, the group is building a new production facility elsewhere.”

Saxony’s Economics Minister Martin Dulig (SPD) called on the company to reconsider the decision. The plans are a “setback” for the automotive state of Saxony. Plans to set up a plant in Hungary show that there is a market for GKN products. “Why the location in Saxony cannot be maintained from the point of view of the West German management will have to be checked,” says Dulig.

The trend towards electromobility brings that too supply industry not only in Saxony a far-reaching upheaval. An electric motor requires far fewer components than a conventional motor. Some suppliers therefore have to adapt because the parts they produce are used less and less. In addition, the supplier industry is also struggling with increased energy costs. At the automobile congress in Zwickau in autumn, there was talk of a devastating situation. According to industry experts, production no longer pays off for many companies.

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