Automotive giant to close two factories due to bankruptcy risk

As economic pressure on automotive suppliers in Germany increases, Japan's Musashi's decision to close its plants in Hannoversch Münden (Lower Saxony) and Leinefelde (Thuringia) has had a major impact in the country.

The company had promised its employees job security until 2030 as part of the "Future and Social Tariff Agreement" signed in 2022. However, Musashi reportedly backed down from this promise and the factories are at risk of bankruptcy.

Sales declined

According to a report in Artı49, Musashi's financial situation has deteriorated significantly in recent years. Sales have fallen by 40 percent since 2018, and the company has reported losses of approximately €100 million over the past three years.

Musashi is being weakened by Asian rivals producing the same parts at up to 25 percent lower costs. The company is preparing to close two of its nine European plants and six in Germany, citing this situation.