The financial pressure on Germany’s automotive sector has intensified yet again. Plastic Manufacturing — a long-established supplier producing plastic components for major car brands — has filed for insolvency, putting more than 1,000 jobs at risk. The company’s main site in Diepersdorf near Nuremberg, along with additional facilities in Saxony and North Rhine-Westphalia, are affected.
Rising operational costs and a significant drop in European vehicle production have eroded revenues, forcing the company into restructuring proceedings.
Three sites affected across Germany
According to preliminary insolvency administrator Volker Böhm (law firm Schultze & Braun), the insolvency filing covers:
- Approx. 830 employees in Diepersdorf, Bavaria
- Approx. 95 employees in Oberlungwitz, Saxony
- Approx. 120 employees in Lüdenscheid, North Rhine-Westphalia
Plastic Manufacturing has been supplying the automotive industry for more than five decades — producing components such as radiator grilles, mirror covers and steering wheel trims.
Böhm says operations will continue for now:
- The wages and salaries are secured for the next two months through insolvency benefits.
- This, he explained, buys crucial time to stabilise operations and evaluate restructuring paths.
Industry-wide pressure leaves little room to maneuver
The supplier relies heavily on demand from European car manufacturers. But automakers have been reducing output amid:
- Falling new car registrations across Europe
- Higher production and energy costs
- Supply chain volatility in the shift to electric mobility
As Böhm noted, the entire plastics-processing automotive segment remains under severe economic strain.
Talks with carmakers and suppliers underway
To secure a future for the business, Böhm intends to negotiate with key automotive customers and the supplier network. Their willingness to support ongoing operations could determine whether parts of the company survive under new structures — or whether layoffs and closures become unavoidable.
Employees, meanwhile, are left in uncertainty as the company navigates one of the most complicated phases the German auto industry has faced in recent years.
A sign of wider challenges in Germany’s supply chain
Plastic Manufacturing’s insolvency adds to a growing list of medium-sized suppliers struggling to adapt to market transitions, tighter margins and rising costs. Industry analysts warn that smaller suppliers, deeply integrated into the traditional combustion-engine supply chain, may be particularly vulnerable as electrification reshapes demand.
What happens next will depend on the success of restructuring and whether customers remain committed during the process. For over 1,000 workers, the coming months will be decisive.
