- Coburg: Brose might problems public – Car supplier describes tense situation
- “Insufficient Return” no longer allows self-financing – Loans “to a considerable extent”
- Employees apparently dissatisfied – Company complained “extraordinarily high turnover”
- Lack of motivation with the staff? Brose sees “unfortunate misunderstanding”
The Franconian automotive suppliers have been struggling for a long time. Delivery bottlenecks, massive cost increases and the energy crisis pose major challenges for companies. The ailing cable specialist Leoni, based in Nuremberg, expects write-downs in the high three-digit million range for the past financial year. The Coburg-based automotive supplier Brose is also obviously simmering – the company does have one point, however seriously misunderstoodas opposed to a speaker now inFranken.de stressed.
Coburg: Auto supplier Brose causes irritation with statements about employees – staff unmotivated?
In a recent press release, the Upper Franconian family company several problems at once a. After several years of stagnation, sales – mainly due to the consolidation of the joint venture between Brose and the Volkswagen subsidiary Sitech – have grown to 7.5 billion euros. However, the lie Return on Sales and Return on Investment with 1.1 and 1.7 percent respectively “at an absolutely unsatisfactory level”, so Brose literally. “The insufficient return leaves the self-financing of the family business first time no longer,” it says.
With far-reaching consequences: “Therefore we had to Significant bank loans be included,” reports the automotive supplier, who among other things also Locations in Bamberg and Würzburg has. The equity ratio is still over 50 percent. The movement of goods also keeps Brose on its toes. According to the company problems in logistics to an average inventory of 32 working days, “with one day tying up around 20 million euros in liquidity”. The mood among the Brose employees seems to have set the alarm bells ringing for those responsible.
“Care for also prepares shareholders, advisory board and management the motivation which has now grown to more than 31,000 employees workforce“It says in the message published last Friday evening (April 14, 2023). It is therefore going through “an extraordinarily high turnover” noticeable. Does Brose accuse its employees of a lack of work attitude? Several media had interpreted the choice of words in the press release in this way. The automotive supplier himself, on the other hand, sees his statement as misinterpreted.
Brose spokesman takes a position: “No reproach to the workforce, but an order to the management”
Brose press spokesman Christian Hößbacher-Blum speaks in the conversation inFranken.de on Monday afternoon (April 17, 2023) by a “regrettable misunderstanding”. The statement was sometimes misinterpreted. “It is not a reproach to the workforce that their motivation is too low,” the spokesman clarifies. With a view to the general mood of the employees, the company sees the executive floor on the train. “The management has been given the task of increasing motivation,” says Hößbacher-Blum.
Brose currently operates 69 locations in 25 countries. “Many employees rightly want the personal, unbureaucratic and pragmatic way of working of a family business,” stated the automotive supplier in its statement on Friday. With a view to the wages paid At the same time, those responsible emphasize their own accommodation. Although Brose has not generated a positive result at the German locations for four years and at the large locations in Coburg and Bamberg is not bound by collective bargaining agreements, the conclusion of the metal industry was taken over in its entirety.
With a view to the location strategy, the Coburg family business takes obvious his employees are also responsible. In contrast to its competitors, the Brose Group employs almost a third of its total workforce at German locations. “Compensation for the associated cost disadvantages can only through a significantly above-average performance achieved,” emphasizes the Franconian supplier. In order to remain competitive, decision-making processes and organizational structure should be implemented in the future “significantly” slimmed down become. Shareholders and advisory board would have that Managing directors in addition prompted accordingly.
Brose management expects stabilization – EUR 422 million investment approved
In its press release, Brose reports verbatim on one “unsatisfactory earnings situation”. Not only the costs in production, logistics and administration would have to be improved be lowered, but when making acquisitions, more attention is paid to returns and unprofitable deals are terminated. According to the company, the shareholders, advisory board and management agree on this point. However, the press release does not mention a possible downsizing.
Last fall, the auto parts supplier announced that it would Location in Bamberg to expand significantly. The company spoke of doubling its capacity. Due to the massive expansion more than 600 new jobs develop.
The Brose management expects one in the current year Group turnover of 8.6 billion euros and a stabilization in global vehicle demand. After investments of 332 million euros in 2022, the shareholders and the advisory board approved for the current financial year Investments of 422 million euros. “This will create additional capacities in production and administration in other European countries, in China, North America and Germany,” concluded the Coburg-based automotive supplier Brose in its statement last Friday.
