Camilla Jessen
German VW supplier Bohai Trimet files for bankruptcy.
The German automotive sector has been hit by another major blow as Bohai Trimet, a long-standing supplier to Volkswagen, has filed for bankruptcy at its plant in Harzgerode, Saxony-Anhalt.
The move places 580 jobs in jeopardy and marks the end of a 40-year chapter unless a recovery plan can be established.
Factory management submitted the bankruptcy request to the local court on Tuesday, initiating insolvency proceedings.
Under German law, this grants the company a three-month window to restructure operations or find a buyer—with the goal of reaching a settlement with creditors to avoid permanent closure.
If no viable solution emerges within that time frame, the factory will shut down and all employees will be laid off.
Insolvency administrator Olaf Spiekermann has been appointed to oversee the process. Following a visit to the site, he emphasized the immediate priority: maintaining stable production and continuing deliveries to customers.
“I’ve already received positive feedback from key clients, which gives us a reason for cautious optimism,” Spiekermann told German media outlet MDR.
A Key Player in Auto Manufacturing Since 1985
Bohai Trimet, which began operations in 1985, has been producing components such as gearboxes and body parts for major automakers.
The company, now under Chinese ownership, operates two plants in Germany.
The Harzgerode location, deeply embedded in the region’s industrial heritage, is now at the heart of the crisis.
Volkswagen, the plant’s biggest customer, has been central to its operations for decades.
However, VW itself is facing financial pressures and has announced plans to eliminate around 40,000 jobs across its German operations, along with production cuts at multiple sites.
These moves are having a cascading effect on suppliers like Bohai Trimet.
The past six months have seen several automotive suppliers in Saxony-Anhalt file for bankruptcy, including Boruszew Kunststofftechnik and Schlote.