Unions voice worries over potential job losses at an automotive component manufacturer - Unions express concern over potential job losses at automotive supplier companies
In a recent development, Japanese automotive supplier Musashi has announced plans to close two plants in Germany and significantly reduce staff at a third facility by 2026. The affected plants are located in Leinefelde (Thuringia) and Hannoversch Münden, with a significant reduction in workforce planned at the Lüchow plant in Lower Saxony.
According to information provided by IG Metall Nordhausen secretary Sascha Wollert, the restructuring will impact several hundred employees across these sites. Specifically, the factories in Hann. Münden and Leinefelde are reportedly planned to close completely, affecting around 420 employees combined. The company's plant in Lüchow, on the other hand, faces a more severe impact, with half of the jobs at risk.
The jobs affected in the metal and electrical engineering industries are well-paid and collectively agreed. The news has left colleagues at the affected factories feeling angry and insecure, with some young employees with families and mortgages for their homes among those affected by the potential job losses.
Musashi Europe GmbH, the company's European subsidiary, produces components for the drive and chassis of cars and employs around 2,500 people at nine locations in Europe. The company is part of the global Musashi Seimitsu Industry group.
The region where the factories are located is structurally weak, with the closures and job losses likely to have a significant impact on the local economy. The "Wirtschaftswoche" had previously reported this news.
The timeline for the closures and workforce reductions is slated to take place by or during the year 2026, although a precise timeline has not been provided. Musashi Europe GmbH was initially unreachable for comment.
| Location | Action | Employee Impact | Timeline | |------------------|----------------------------|------------------------|-------------------| | Leinefelde (Thuringia) | Plant closure | Several hundred jobs affected | By 2026 | | Hannoversch Münden | Plant closure | Several hundred jobs affected | By 2026 | | Lüchow (Lower Saxony) | Significant workforce reduction | Large headcount reduction | By 2026 |
This plan reflects Musashi's effort to restructure its German operations with substantial impacts on local employment at these plants.
- The community policy should address the vocational training needs of former employees from the closing plants in Leinefelde, Hannoversch Münden, and Lüchow, as they transition into new industries such as manufacturing, finance, or transportation due to the loss of their jobs in the automotive industry.
- Vocational training programs in Thuringia, Lower Saxony, and other regions may need to be expanded to help the affected workers acquire new skills for employment in sectors like manufacturing, business, or automotive as a result of the Musashi plant closures.
- Industry leaders, financial institutions, and transportation providers can collaborate to support the affected workers in finding alternative employment and improving their chances of securing vocational training, especially in the manufacturing, automotive, and business sectors.
