The maker of emblems for Mercedes-Benz declared bankruptcy

German company Gerhardi Kunststofftechnik, which was engaged in production of automobile components, including emblems and radiator grilles for Mercedes-Benz, Audi and other car companies, declared bankruptcy in November. This was reported by Bloomberg agency.

The reason for the bankruptcy is called a long period of rising costs and lower demand for products. In 2024, the number of employees of the company reached 1.5 thousand people, now their future is uncertain. Gerhardi was founded in 1796 and started with the production of metal products. Among other things, Gerhardi was engaged in the production of three-beam stars for Mercedes-Benz cars, in the last century the company became one of the main suppliers for the German automobile concern.

"Gerhardi Kunststofftechnik has survived Napoleon's invasion, the Great Depression and two world wars. But it has been seriously undermined by the current downturn in Europe's automobile industry," the agency noted on Dec. 21.

Hundreds of other small suppliers to car companies in Europe are in trouble as auto companies cut production due to weak sales and difficulties with the transition to electric vehicles, the note said. French company Forvia SE (a supplier of components to Stellantis and Volkswagen) and Swedish battery maker Northvolt AB are cited as examples.

In total, according to CLEPA, the association of European auto parts suppliers, manufacturers of such parts have announced 53,300 job cuts in 2024 (most of them in Germany). This is more than during the peak of the coronavirus pandemic, when factories and car dealerships were closed for several months. According to consulting firm McKinsey, one in five auto parts suppliers expect losses next year, as two-thirds of them reported margins of 5% or lower by the end of 2024.

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The day before, it was reported that Nissan and Honda signed a memorandum of understanding to discuss opportunities to integrate the two companies' businesses by creating a joint holding company. In a statement, the car companies announced that the potential merger is "aimed at maintaining global competitiveness."