North Hessian industry crisis: VW and SMA in difficulties!

North Hessian industry crisis: VW and SMA in difficulties!

The stagnating industry in Hesse: A look at the challenges

In the Hessian industry there is currently a tense situation. Increasing energy costs, shortage of skilled workers and international competition, especially from China, are troubled by companies. This development affects the entire Federal Republic, but a comparatively stable situation is shown in Northern Hesse. Oliver Dietzel, trade unionist of IG Metall Nordhessen, is optimistic about the constitution of the Volkswagen plant in Baunatal, even if the contracts of 720 temporary workers have recently not been extended, which increases uncertainty for the employees. In an interview with the HNA, he emphasizes that despite all the challenges, there are also bright spots, since the work benefits from the demand for hybrids and burners.

But the uncertainties are omnipresent. While the VW plant is the largest industrial employer in the region, the increasing reports on job cuts and location closings for other companies ensure concern. For example, SMA Solar plans the dismantling of 700 jobs at the headquarters in Niestetal to react to the decline in demand and the falling prices. Putzmeister will also hire the company in Gründau by the end of 2025 - 250 employees are affected because the production is shifted to Turkey.

different industries, similar concerns

The challenges are noticeable in many areas of industry. According to a report by Hessenschau.de, both the automotive and the steel and chemical industry suffer from the high production costs and international competition. Many companies bring the returning orders to their load limit. Companies such as Continental close locations in Hesse, as far as 1,200 employees are concerned, while Goodyear wants to close a work in Fulda in 2025 and over 1,000 jobs.

Francisco Dietzel emphasizes that military technology is a promising industry, but it will not be able to compensate for the problems in the high -pressure automotive industry. The development in the automotive industry is particularly alarming: over 12,000 jobs were lost in 2024 - large companies such as Bosch and ZF are affected. The challenges arise not only from high energy costs, but also by a lack of order that leads to inefficient production. The manufacturers in Germany also have a decline in their market shares in China, where domestic companies will better assert themselves.

inconsistent perspectives and necessary reforms

The IHK and other institutions require urgent reforms to improve the economic situation. Dirk Pollert from the Association of Hessian Entrepreneurial Associations speaks of a structural crisis that can also be felt throughout Germany. The bureaucracy, slow authorities and high tax burdens often prevent companies from investing in a positive future. The unemployment rate in the state fell to 5.5 percent, but the situation is perceived as critical because early indicators indicate negative development.

In the middle of these uncertainties, the training at VW is still attractive, and it is expected that all trainees are taken over. IG Metall has decided to use modern platforms such as Tiktok to reach younger people and at the same time remains dependent on the traditional speech by works councils in order to focus on the topics of job security and a shortage of skilled workers. Dietzel also criticizes the excessive energy prices in Germany and demands an industrial cost rate of 12 to 15 cents per kilowatt hour to increase competitiveness.

For more details, read the reports from HNA, Hessenschau and ZDF.