Automotive Tier 1 Suppliers Preh tightens austerity program and cuts jobs

Der Standort von Preh in Bad Neustadt an der Saale.
The Preh fabrication site in Bad Neustadt/Saale, Germany.

Due to the continuing negative development in the automotive industry, Preh sees itself forced to expand its cost-cutting program, which has already been initiated, to include personnel cuts.

Germany based Preh, Bad Neustadt a. d. Saale, is intensifying its cost-cutting program to ensure sustainable competitiveness. The automotive supplier from Bad Neustadt must supplement its cost-cutting program already underway with personnel cuts in order to safeguard its competitiveness and earnings position.  
The expanded cost-cutting program envisages reducing the workforce at the Bad Neustadt location by up to 77 jobs. This affects all indirect and development areas at the automotive supplier's headquarters, where there has been a massive increase in capacity in recent years due to numerous major orders. At present, around 1,860 full-time employees work here. The aim is to make the reduction as socially acceptable as possible.

Dr. Michael Roesnick, Interim Co-CEO of Preh GmbH: "The current overall situation forces us to take countermeasures. We will now do everything in our power to implement the personnel measures in a socially compatible and fair manner. Despite the acute cost pressure, Preh is well positioned in the market. Thanks to our innovative strength, the order books are well filled. Even in this difficult industry situation, our know-how remains attractive for our customers. Nevertheless, the sustained safeguarding of our competitiveness requires cost savings in the personnel area. It goes without saying that our works council is closely involved in the concrete design of the system".
One of the socially acceptable measures is that some vacancies due to retirements will not be filled. In addition, Preh Sweden will contribute to the Preh Group's cost-cutting program. The comparatively small Swedish e-mobility unit is currently still represented at two sites, in Gothenburg and Jönköping. In view of the continuing high cost pressure, the Jönköping site will be closed by the end of the year and all activities will be concentrated at the Göteborg site. Irrespective of the strict austerity measures, the order situation is very good, especially in the e-mobility segment, making this the fastest growing segment in the Preh Group.