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- Jun 2, 2003
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Karmann, Germany's largest independent car manufacturer, which makes mostly convertibles for Audi, Porsche, VW, M-B, BMW, Ford, and Chrysler, is in financial trouble. The reason is of course reduced production due to a decreasing volume in car sales.
Even worse, there are about 700 manufacturers that supply the German car and international auto industry with parts. About 350,000 people work for those 700 companies, and up to 50,000 workers may lose their jobs soon. 20% of those 700 companies are expected to go broke within two years. Many of the factories are already being shut down for several days every week.
Bosch is the world's largest auto parts supplier. They just laid off 400 workers at one facility alone. Work hours are being reduced, overtime pay is being cut.
The total turnover of the German auto supply manufacturers was 51 billion Euro between January and August of this year. Besides decreased demand, higher raw material cost is a burden that cannot be passed on. Those companies are now teetering at the edge of profitability.
Most of the 700 auto supply companies in Germany are small companies, owned by middle class folks. The credit crunch has hit them harder than the larger companies and corporations. According to German government officials, "It is the responsibility of the banking industry to finance the middle class owned auto supply companies."
Everyone is getting squeezed. What else is new?
Even worse, there are about 700 manufacturers that supply the German car and international auto industry with parts. About 350,000 people work for those 700 companies, and up to 50,000 workers may lose their jobs soon. 20% of those 700 companies are expected to go broke within two years. Many of the factories are already being shut down for several days every week.
Bosch is the world's largest auto parts supplier. They just laid off 400 workers at one facility alone. Work hours are being reduced, overtime pay is being cut.
The total turnover of the German auto supply manufacturers was 51 billion Euro between January and August of this year. Besides decreased demand, higher raw material cost is a burden that cannot be passed on. Those companies are now teetering at the edge of profitability.
Most of the 700 auto supply companies in Germany are small companies, owned by middle class folks. The credit crunch has hit them harder than the larger companies and corporations. According to German government officials, "It is the responsibility of the banking industry to finance the middle class owned auto supply companies."
Everyone is getting squeezed. What else is new?
