Reports indicate the association was struggling financially due to the automotive industry’s slowdown in the country.
Die Welt reported on Sunday that a German association representing companies involved in electric car production has filed for bankruptcy, citing court documents. The organization, which includes Mitsubishi and Kia among its 450 member companies worldwide, serves as their lobbying arm.
The German Federal eMobility Association (BEM), established 16 years ago, defines itself as a network of stakeholders across the electric car value chain, dedicated to “actively driving the transition to a sustainable mobility and energy system based on renewable energy.”
Die Welt reports that its members generate $114 billion in revenue and employ approximately one million individuals. It also reportedly has a parliamentary advisory board.
The Berlin-Charlottenburg insolvency court has appointed a provisional insolvency administrator for the “struggling” association, according to the newspaper. The reasons behind the association’s decision were not specified. Markus Emmert, a BEM board member, declined to comment when asked by Die Welt.
Germany’s automotive sector has been experiencing a prolonged period of sluggishness. In March, Bosch, the world’s largest automotive supplier by revenue, announced further job cuts that could affect thousands of workers.
Bosch CEO Stefan Hartung cited the weak global economy, the stagnant automotive sector, and increased competition from China as factors in the decision. He also noted that the industry’s shift to electric vehicles is happening more slowly than anticipated.
Major German car manufacturers have also been affected by shutdowns and bankruptcies. In January, Reuters reported that Chinese car manufacturers were considering acquiring Volkswagen factories in Germany that were scheduled to close.
The previous government, led by former Chancellor Olaf Scholz, aimed to have 15 million fully electric cars on German roads by 2030. However, the Federal Motor Transport Authority reported that as of January 1, only 1.6 million electric vehicles were registered, representing only 3.3% of the country’s total passenger car fleet. Electric car sales declined after Scholz’s cabinet eliminated government subsidies for EV purchases following the 2023 budget crisis.
Earlier this year, the Handelsblatt Research Institute (HRI) cautioned that the German economy is on track for its longest recession since World War II, with a third consecutive year of contraction predicted for 2025.
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