German auto parts manufacturer declares bankruptcy

German supplier of automotive parts, Diepersdorf Plastic Manufacturing, has declared bankruptcy, putting more than 1,000 jobs at risk.

Based in Bavaria, Diepersdorf Plastic Manufacturing is one of the leading companies in its segment, Caliber.Az reports, citing BR24.

For over 50 years, it has specialised in plastic processing and produced automotive components such as logos, emblems, decorative parts, radiator grilles, and control system coverings. The company operates plants in Germany and the Czech Republic.

Falling demand and rising raw material and energy costs were cited as the main reasons for the bankruptcy.

More than 1,000 employees at the company’s facilities in Bavaria, Saxony, and North Rhine-Westphalia now face potential layoffs. Germany’s automotive industry is undergoing a severe downturn.

On November 3, another parts supplier, Mahle, announced plans to cut around 1,000 jobs, following earlier downsizing moves by Bosch and ZF Friedrichshafen.

The Diepersdorf-based company, formerly known as Bolta-Werke, filed for insolvency with the Nuremberg District Court, affecting four German subsidiaries.

The move followed the bankruptcy of its U.S. parent company, First Brands, which is burdened with over $11 billion in debt.

Attorney Volker Böhm from Schultze & Braun has been appointed as provisional insolvency administrator and aims to stabilise operations while wages remain secured for two months.

The company, which manufactures plastic and chrome parts for brands including Audi, had already gone through insolvency in 2021 before being sold twice in subsequent years.

A new investor rescue is considered unlikely amid declining car sales and soaring production costs across Europe.

By Jeyhun Aghazada