thyssenkrupp Automotive Technology responds to ongoing challenging market conditions with additional cost-cutting measures

• Following declining figures in the first months of the fiscal year, the segment board has decided on a comprehensive package of measures to reduce costs.

• Measures include lower investments and optimized inventory management to reduce tied-up capital.

• Automotive Technology imposes a temporary hiring freeze and plans a cost reduction focusing on personnel costs exceeding 150 million euros.

• CEO Volkmar Dinstuhl: “The outlook for the global automotive industry remains weak. We cannot escape these market pressures.”

thyssenkrupp Automotive Technology is responding to the persistently challenging market conditions in the global automotive industry by intensifying its cost reduction efforts. The measures decided by the segment’s board include adjusting investments (Capex) in line with lower expected sales volumes, optimizing inventory management to reduce tied-up capital (Net Working Capital), and imposing a temporary hiring freeze, particularly for positions above a certain salary threshold. As part of the program, personnel costs in the indirect areas of the Automotive Technology segment are to be adjusted to the lower sales volumes. The goal is to achieve a global cost reduction of over 150 million euros, which is to be achieved, among other measures, through the reduction of approximately 1,800 jobs.

Volkmar Dinstuhl, CEO Automotive Technology: "The outlook for the global automotive industry remains weak. Production volumes continue to lag behind historical lows, and discussions about new tariffs are creating further uncertainty. As a result, numerous OEMs and suppliers have announced extensive restructuring measures in recent months. We cannot escape these market pressures, although we remain convinced of the future viability of our technologically leading component businesses. Despite all cost-saving measures, we will continue to invest prudently in new technologies and future growth."

Significantly declining business performance
In the first quarter of the 2024/2025 fiscal year (as of September 30), thyssenkrupp Automotive Technology recorded a 12 percent decline in order intake and a 10 percent drop in sales. Nearly all business units in Europe, North America, and China were affected by the decline in customer demand. Adjusted EBIT for Automotive Technology fell by 75 percent to €12 million.

The newly approved cost-cutting program complements the previously initiated measures aimed at improving Automotive Technology’s performance, including initiatives within the group-wide APEX performance program. For example, thyssenkrupp is continuing sales negotiations with potential investors for the Springs & Stabilizers business unit. The Powertrain activities of the Automation Engineering business unit in Bremen are to be gradually phased out by 2026. The Automotive Body Solutions business unit is undergoing a structural realignment to enhance competitiveness and profitability. Similarly, at Italian subsidiary Berco, targeted measures have been carefully introduced to restore competitiveness and ensure the company’s long-term presence in Italy.

Following the segment board’s decision to intensify cost-cutting measures, the program will now be further detailed within the respective business units. The necessary employment adjustments in indirect areas will also be planned individually, discussed with the relevant co-determination committees, and implemented accordingly.

Kerstin Ney, Chief Human Resources Officer, Automotive Technology: "This step is unavoidable to maintain the competitiveness of our businesses and thus secure employment at our plants worldwide in the long term. In discussions with the relevant employee representatives, we will seek solutions to minimize the impact of job reductions on affected employees - as part of thyssenkrupp’s long-standing commitment to corporate responsibility and social partnership."