“I have been working here for 39 years and this is my last day of work. I never imagined that all this could happen,” said a worker at Werkzeugbau Laichingen, quoted by the Greek daily Naftemporiki.
A company with a lifespan of 130 years, which has gone through two world wars, the Cold War and the oil crisis of the 1970s, but unfortunately has not been able to overcome the crisis currently affecting the German car industry.
The company specialized in the manufacture of metalworking machinery for the automotive industry and had 100 employees. “Until a few years ago, we had to cancel orders due to overcrowding, but now it's all over,” adds a disappointed Baird, as he bids farewell to the company, which has been declared bankrupt, unable to pay its debts.
According to the DIHK Chamber of Commerce and Industry, what happened to the historic Laichingen company was experienced by at least 22,000 small, medium and large companies throughout Germany in 2025, and more than 280,000 people lost their jobs. Everywhere, without regional discrimination – east, west, north and south – the economic and industrial crisis hits the Federal Republic mercilessly. The domino effect hit the automotive, mechanical engineering and steel industries.
The crisis is not improving
The crisis in the European auto industry does not seem to be easing any time soon, with Germany at the center of the pressure. Massive layoffs, declining orders and tougher economic conditions are creating an environment that tests even the most traditional industries.
“For example, the situation in the industrial area of Stuttgart is dramatic: hundreds of bankruptcies, thousands of unemployed. Until a few years ago, this was one of the richest and most productive areas in Germany and Europe.”
23% increase in bankruptcies
Bankruptcies increased by 23% compared to the previous year. The impact on the economy is significant: losses exceed 57 billion euros. Analysts and economists speak of a “perfect storm”: The main causes of the bankruptcy explosion are skyrocketing energy costs, suffocating red tape and collapsing global demand.
Added to these are competition from the Far East, especially China, the trade war with the United States and the “Green Deal”, which punishes traditional German industry, especially the automotive, steel and parts sectors. In addition, there is a lack of domestic and foreign investment.
“Compared to a few years ago, it is much more difficult, if not impossible, to find a German or foreign investor willing to rescue or help a German company in difficulty,” say the same sources.
Terrible ninth trimester
A domino effect occurred, especially in the automotive giants Volkswagen, Mercedes-Benz and Porsche, then in the component giants Bosch and ZF, and finally in all related industries. In the automotive sector alone, nearly 50,000 jobs were lost in one year.
Truck and bus manufacturer MAN recently announced a 2,300-person workforce reduction. Clinics and hospitals also faced closures and bankruptcies. The manufacturing and food sectors remain stable.
The focus is on new technologies and digitization, but the transformation that the economy wants and politicians promise has not yet arrived. “In some sectors, we are in the ninth consecutive quarter without growth. Policymakers need to implement urgent reforms, for example in the field of social security. Otherwise, costs will continue to rise, especially for companies with a large workforce,” emphasizes Dink Fokker Trier, chief analyst at the Chamber of Commerce and Industry.
A few days earlier, Peter Leibiger, president of the BDI, the federation of German industries, had sounded perhaps the most worrying alarm of all: “The German economy is facing the deepest crisis since the founding of the Federal Republic, but the government is not reacting,” he pointed out.
