In the first half of this year, global new car output was severely lower than expected, leading to the decline in profits of major auto manufacturers and component suppliers. Daimler and Continental have all lowered their full-year forecasts. Bosch even predicts that new car production in 2019 will fall by 5%, which is higher than the previous forecast of a 3% decline.
While large companies with strong anti-risk capabilities have lowered their expectations, some companies have begun to apply for bankruptcy protection. According to Reuters, German parts supplier Eisenmann has filed for bankruptcy protection with the Stuttgart District Court on July 29. According to public information, Eisenman's headquarters in Boeblingern, Baden-Württemberg, Germany, has 3,000 employees, and its operating income in 2017 was 723 million euros (about 806 million US dollars). In 2015, Eisenman provided painting shop services for Tesla's Fremont plant in California.
In 2018, Eisenmann acquisitions and other projects caused huge losses, so the company hopes to be able to respond quickly and continue to develop, and hopes to establish a strategic and architectural foundation to form long-term competitiveness. However, a spokesman declined to say what the project was. In fact, since March this year, Eisenman has begun to reorganize and reposition strategically, and the application is made to accelerate the pace of reorganization. On the day the application was filed, Eisenman also notified all employees of the matter.
The company said it is looking for strategic partners for the painting, final assembly and application technology businesses, and has already shown interest from potential buyers. Michael Keppel, the company's executive in charge of restructuring, is confident in the restructuring. "We believe that we can work with our strategic partners to respond to increasing risks and capital needs and realize our potential faster and more fully. & Assembly (PA) and Applied Technology businesses looking for strategic partners. "
According to Eisenmann, the company hopes to focus on its core business and promote the restructuring and strategic positioning of the Eisenman Group to resume profitability as soon as possible. Eisenman hopes to use this opportunity to start again and continue to develop on a more mature business model. The company's board of directors and the Eisenman family support this approach.