The auto supplier ZF continues its austerity program. The company announced on Monday in Friedrichshafen that it intends to close the loss-making production in Gelsenkirchen at the end of 2024. Around 200 people are currently employed at the factory, producing steering systems for cars and commercial vehicles.
There was already a threat of closure in 2018, but at that time things continued with fewer staff. In the hope of getting orders for electric steering systems for trucks, the company said it accepted losses worth millions. However, the hoped-for orders apparently did not come. Now the rip cord should finally be pulled.
The automotive supplier from Friedrichshafen has high debts and needs additional cash for investments. Scenarios are circulating in the company according to which several thousand jobs are at risk.
The management wants to hold negotiations with employee representatives in Gelsenkirchen. ZF said they wanted to find “good solutions for the affected employees”. The group, based on Lake Constance, has around 165,000 employees worldwide, including 53,000 in Germany. Annual sales for 2022 were 43.8 billion euros.