Thyssenkrupp cuts back on automotive engineering

Thyssenkrupp group is realigning its automotive engineering business, in the process cutting back on staff capacity, and potentially looking for partners/buyers.

In the coming months the current System Engineering business unit will be split into two independent business units, Kallanish hears from the group. The aim is to create two independent companies with different product ranges.

One will be an engineering company specialising in body assembly lines which will continue to be managed as part of thyssenkrupp’s automotive supply and service segment (Automotive Technology). The other will combine the current powertrain and battery assembly activities and will be part of thyssenkrupp’s portfolio segment (Multi Tracks).

Going forward, a solution will be found for this business outside thyssenkrupp, either in partnerships or under new owners, the group says. In the process, around 800 jobs will be reduced across both units in the current fiscal year, the company says. The reason for restructuring is a slump in order intake and sales drastically exacerbated by the coronavirus crisis, tk says.