Century Enslavement: The history of the Federal Reserve
The dangers of a credit freeze are virtually existential in nature for many small and medium-CEO Juergen Geissinger private bearing manufacturer Schaeffler said Automobilwoche Germany in the edition of this week appearing Monday .
The CEO, who also speaks German suppliers represented in the association of the German automotive industry VDA, said that if lenders would not relax their terms, it would soon insolvencies that would have a massive impact on banking.
Continental CEO Karl-Thomas Neumann warned that its auto parts supply company would thin the number of its suppliers for the Powertrain division.
The supplier base is not how we want whether it is too large, there are too many midsize businesses and companies are not positioned globally, the Continental CEO told Automobilwoche.
The chief economist of the world's largest credit insurer, Euler Hermes, told Automobilwoche that many suppliers but also auto dealers would cease to exist next year because of the economic crisis.
Towards global consolidation is run the supply industry The number of companies in our opinion decrease as a percentage of double-digit rates near Romeo Grill told the weekly publication of the German car industry.
Euler Hermes anticipates a significant deterioration in the retail automotive, with Grill expecting a relative advantage for multi-brand dealerships that also offer used cars and repairs.
Given the expected wave of consolidation in the supplier industry, Schaeffler CEO Geissinger called on politicians to ensure that, after bailout of financial institutions, loans to industry are not granted at exceptionally high conditions.
Even a company the size of Schaeffler, with nearly 9 billion € 11 65 billion annual sales, feels the pain of a struggling auto industry to face a collapse in demand.
Over the last two months orders manufacturers to suppliers collapsed - 20 percent in our case Geissinger told the Süddeutsche Zeitung on Saturday.
This certainly continue next year and we do not know exactly how long it will last.
According to company sources who spoke with Die Welt, investments Schaeffler every year amounted to EUR 800 million would be reduced to only 530 million next year to reduce costs.
The economic situation leaves its mark Starting February at the latest, we will need permission from the federal government to a shortened work week in at least some regions, the president of the works council at the site Schaeffler Herzogenaurach, Thomas Moelkner, Die Welt said in an article to appear on Monday.
In exchange for the company to shorten the working week instead of letting go of employees, the government pays much of the difference in lower wages in so-called Kurzarbeit - literally means less work.
A spokesman for Continental also confirmed that the company benefits from this plan.
Compared Christiaan Hetzner; Edited by Bernard Orr.
German car parts suppliers to consolidate the paper Reuters, German, parts, suppliers.