thyssenkrupp Automotive Technology is responding to the persistently challenging market conditions in the global automotive industry by intensifying its cost reduction efforts. The measures decided by the segment’s board include adjusting investments (Capex) in line with lower expected sales volumes, optimizing inventory management to reduce tied-up capital (Net Working Capital), and imposing a temporary hiring freeze, particularly for positions above a certain salary threshold.

As part of the program, personnel costs in the indirect areas of the Automotive Technology segment are to be adjusted to the lower sales volumes. The goal is to achieve a global cost reduction of more than €150 million, which is to be achieved, among other measures, through the reduction of approximately 1,800 jobs.

The outlook for the global automotive industry remains weak. Production volumes continue to lag behind historical lows, and discussions about new tariffs are creating further uncertainty. As a result, numerous OEMs and suppliers have announced extensive restructuring measures in recent months. We cannot escape these market pressures, although we remain convinced of the future viability of our technologically leading component businesses. Despite all cost-saving measures, we will continue to invest prudently in new technologies and future growth.

—Volkmar Dinstuhl, CEO Automotive Technology

In the first quarter of the 2024/2025 fiscal year (as of 30 September), thyssenkrupp Automotive Technology recorded a 12% decline in order intake and a 10% drop in sales.

Nearly all business units in Europe, North America, and China were affected by the decline in customer demand. Adjusted EBIT for Automotive Technology fell by 75% to €12 million.

The newly approved cost-cutting program complements the previously initiated measures aimed at improving Automotive Technology’s performance, including initiatives within the group-wide APEX performance program. For example, thyssenkrupp is continuing sales negotiations with potential investors for the Springs & Stabilizers business unit. The Powertrain activities of the Automation Engineering business unit in Bremen are to be gradually phased out by 2026. The Automotive Body Solutions business unit is undergoing a structural realignment to enhance competitiveness and profitability. Similarly, at Italian subsidiary Berco, targeted measures have been carefully introduced to restore competitiveness and ensure the company’s long-term presence in Italy.

Following the segment board’s decision to intensify cost-cutting measures, the program will now be further detailed within the respective business units. The necessary employment adjustments in indirect areas will also be planned individually, discussed with the relevant co-determination committees, and implemented accordingly.