One of Germany’s biggest auto parts suppliers, Schlote, has officially filed for bankruptcy.
This has jeopardized the jobs of 1,350 employees, despite its high-profile clientele, which includes Ferrari, BMW, Mercedes-Benz, Volkswagen, Skoda, and Porsche.
The company specializes in manufacturing precision metal components for the automotive industry but has been hit hard by the cancellation of a loan worth approximately €20 million (or $21.5 million)—a blow that pushed it over the financial edge.
The news was reported by Märkische Allgemeine Zeitung, with court-appointed bankruptcy trustee Manuel Sack stressing the urgent need to keep the company running—at least in the short term.
“The most important task now is to keep production stable in all four plants and meet delivery obligations,” Sack said. “We are in intensive discussions with all customers in the automotive industry to this end.”
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Three Months’ Pay Secured—for Now
Thanks to Germany’s bankruptcy rules, Schlote’s 1,350 employees will continue to receive their salaries for three more months. After that, their job security is up in the air.
The bankruptcy affects not only the main company but also four of its subsidiaries, with operations in Brandenburg an der Havel, Harsum, Harzgerode, and Wernigerode.
Even with the financial trouble, several major automakers have expressed interest in continuing to work with Schlote—hoping to avoid disruption to their supply chains.
Schlote’s Chief Financial Officer, Michael Bormann, says the company could have survived if the banks had given them more time.
“I’m very disappointed with the banks,” Bormann said. “Some of our subsidiaries are actually in good financial shape.”
He believes the decision to cancel the loan came too soon, especially with talks still ongoing with key customers.
Not the Only One in Trouble
Schlote is not alone—other auto suppliers in Germany have also gone bankrupt this year, hit hard by rising costs, supply chain issues, and industry changes driven by the shift to electric vehicles.
As automakers push to cut costs and streamline operations, smaller suppliers are under pressure.
Without fresh investment or a buyer, Schlote could be the next casualty in a growing list of bankrupt parts suppliers.
