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News 12.11.2019

Negative sector development requires personnel cutbacks

Preh toughens savings program to ensure
sustainable competitiveness

Bad Neustadt. The ongoing negative development in the automotive industry once again increases Preh’s need to make savings. The supplier from Bad Neustadt a. d. Saale has to supplement the cost-cutting program it has already begun with personnel cuts to ensure competitiveness and profitability.  

The expanded cost-cutting program envisages a reduction of up to 77 positions in the number of staff at Preh’s Bad Neustadt site. Affected are all indirect and development areas at the automotive supplier’s headquarters, which in recent years has seen a massive expansion of capacity due to numerous large orders and currently employs around 1,860 full-time staff. The aim is to make the cutbacks as socially acceptable as possible. 

Dr. Michael Roesnick, Preh GmbH’s Interim Co-CEO: “The overall situation at the moment forces us to take countermeasures. We will now make every effort to implement the personnel measures in a socially acceptable manner and in a spirit of fair cooperation. Despite the acute cost pressure, however, Preh is well positioned on the market. Thanks to our innovative strength, our order books are well filled, and even in this difficult industry situation, our know-how remains attractive to our customers. Nevertheless, to safeguard our competitiveness in a sustainable way, cost savings are needed in the personnel sector. Our Works Council is obviously closely involved in the actual arrangements.”

The socially acceptable measures will include, among other things, sometimes leaving posts unfilled that become vacant due to age. In addition, Preh Sweden will contribute to the Preh Group’s cost reduction program. The comparatively small Swedish e-mobility unit is currently based at two locations, in Gothenburg and in Jönköping. In view of the continuing high cost pressures, the Jönköping site will be closed by the end of the year and all activities will be concentrated at Gothenburg. Irrespective of the strict savings policy, the order situation is particularly good in the e-mobility sector, making it the fastest growing part of the Preh Group. 




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