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In a blow to the economy of Thuringia, two major automotive suppliers, Nidec GPM and Musashi, have announced plans to close sites and cut jobs, affecting hundreds of people and raising concerns about the future of entire plants.
Nidec GPM, based in Merbelsrod, has revealed that it will close its Thuringian site, along with its site in Hannoversch Münden (Lower Saxony), and cut around 270 jobs in production. The company spokesman attributed the decreasing demand for their products since 2018 to the increase in electric cars and components supplied to Asia.
Meanwhile, Musashi announced the closure of its Thuringian site in Leinefelde-Worbis, which will affect 260 employees. The company's Works Council Chairman, Christoph Wiederholt, stated that management had missed the turn in the industry, and the site is no longer economically viable. Protests against the closure occurred on Tuesday, with employees demonstrating outside the plant with whistles and rattles.
The developments are not limited to individual regions but are affecting large parts of Thuringia, particularly Southern Thuringia and the Eichsfeld region. The situation in the automotive industry is becoming increasingly tense due to comprehensive job cuts and structural change.
The decrease in demand for combustion engine components, increased costs, and geopolitical uncertainties are contributing factors to the potential closures. Germany, including Thuringia, faces economic headwinds such as stagnating growth; the country’s growth forecast for 2025 was cut to zero, influenced by global trade tensions and reduced demand in key sectors like automotive.
The automotive industry is undergoing significant shifts towards electrification and greener technologies, prompting some traditional manufacturing operations to downscale or close plants. Continental's closure of its Contitech plant in Bad Blankenburg, resulting in about 580 job losses, is part of a strategy that impacts not only the workforce but also local suppliers and service providers, indicating broad economic ramifications.
Local politicians, such as Bundestag member Katharina König-Preuss, criticize the state government for insufficient action to protect jobs, highlighting social unrest and uncertainty among workers. Effective governmental action, worker retraining, and fostering new technologies are key strategies to mitigate these effects and support the region's industrial future.
Enhancing training programs for workers at risk of job loss to enable transition to emerging sectors, possibly including renewable energy and advanced manufacturing, could provide a lifeline for those affected. Supporting new industries and technologies in Thuringia, like the recent development of green hydrogen electrolysis plants and advanced battery manufacturing, could also help offset losses in traditional automotive roles.
Economic diversification away from reliance on traditional automotive manufacturing to more sustainable and technologically advanced sectors is crucial for the region's long-term industrial sustainability. Calls for stronger political engagement and mediation to preserve industrial jobs, including active dialogue and possible political pressure on corporations to reconsider closures or facilitate transitions, are also being made.
Only the plant in Lüchow is to be retained by Nidec GPM, leaving many in Thuringia looking for solutions to shore up the region's industrial base and protect jobs. The future of Thuringia's automotive industry hangs in the balance, and it remains to be seen how the region will navigate these challenging times.
Nidec GPM's decision to close its Thuringian site, coupled with the sport of protests by affected employees, highlights the impact of the auto industry's shifts towards electrification and greener technologies on local communities. Additionally, the closure of Musashi's Thuringian site might forced affected workers to seek opportunities in emerging sectors like renewable energy and advanced manufacturing for their continued engagement in sports.
