Sep 26, 2024 11:44 AM
Supervisory Board of thyssenkrupp Automation Engineering decides on gradual shutdown of powertrain activities in Bremen
Structural changes in the automotive market require measures in the powertrain business at the Bremen site
In the future, the focus will be on strengthening the business units and activities related to assembly and test systems for drive and battery components, on the service business, the future hydrogen business (Hydrogen) and on the international product portfolio
At its meeting today, the Supervisory Board of thyssenkrupp Automation Engineering decided to phase out the powertrain activities at the Bremen site by 2026 and instead focus on business areas related to assembly and test systems for drive and battery components, as well as the service business and the international product portfolio. The Supervisory Board of tkAE has thus followed the recommendation of the management of thyssenkrupp Automation Engineering to realign the Bremen site. The shutdown of the powertrain activities will result in the loss of up to 421 jobs by the beginning of 2026, so that a total of 172 full-time positions will remain in Germany after the measures have been fully implemented, 113 of them in Bremen. Negotiations will be started with the relevant employee representatives in the near future to develop fair and socially responsible solutions for the affected employees. In addition, possibilities for employment within the Group are also being examined.The far-reaching structural changes in the automotive market, in particular the shift towards e-mobility, have had a significant impact on the powertrain business. Despite intensive efforts, a turnaround in this market environment was not possible. In addition, there is increased cost pressure from low-cost suppliers in China.
“After a thorough review of all the options, including a concept proposed by employee representatives, we consider the phased wind-down of the powertrain activities in Bremen to be the only economically viable solution that fully takes into account the difficult conditions in the automotive market,” explained Andreas Ruks, CFO of thyssenkrupp Automotive Technology and Chairman of the Supervisory Board of Automation Engineering GmbH. “Only in this way can we ensure the long-term stability and competitiveness of the Automation Engineering business unit as a whole while offering the remaining employees in Bremen reliable prospects.”
In contrast to the new plant business, the powertrain service business has developed positively in recent years. Demand for specific expertise and experience in this area remains high. As part of the realignment, an expanded “Service+” model will be implemented to ensure the continuation of automation engineering in Bremen – albeit on a significantly reduced scale. In addition, thyssenkrupp Automation Engineering plans to further develop future-oriented business areas such as hydrogen, transport systems and advanced data management (ADM) at the site. After the realignment, the future Automation Engineering unit in Germany will comprise the expanded service business and the assembly and testing facilities for battery and drive components.
The gradual shutdown of the powertrain activities will be completed by the beginning of 2026, with thyssenkrupp Automation Engineering ensuring that all current customer orders are fulfilled in accordance with the contracts.
About thyssenkrupp Automotive Engineering
thyssenkrupp Automation Engineering is an operating unit of the Automotive segment of thyssenkrupp AG. The company combines all activities in the field of drive and battery assembly with a focus on electric mobility and is a reliable partner for its customers with high standards of quality and innovation. Worldwide, more than 1,400 employees work in ten countries on three continents.