Webasto before the change: restructuring, disputes and job cuts!

Webasto before the change: restructuring, disputes and job cuts!

The situation at Webasto, the automotive supplier from Stockdorf, is causing a lot of interest in the industry. The company has reached a fundamental agreement on a restructuring agreement with creditors, such as the NP Coburg reported. But despite this progress, there is still a lot to be clarified, especially the negotiations with Volkswagen, one of Webasto's most important customers.

Economics Minister Hubert Aiwanger from the state government is trying to act as a mediator between the parties. The crisis should not be underestimated: Webasto has over a billion euros in debt and is planning to cut 650 jobs in Germany. The company has been struggling with various challenges recently, be it from failed product developments such as charging stations for electric cars or from a general decline in sales by German car manufacturers in the important Chinese market.

Market developments and potential

The situation has become particularly aggravated for Webasto, as Volkswagen was able to sell almost 1.3 million fewer cars in China last year than in 2018. These developments have not only had a negative impact on Webasto's business, but have also clouded the mood and future prospects. Despite all this, there are also bright spots: Webasto has once again proven its strength in the panoramic and sliding roof segment in China, where demand has skyrocketed.

Thanks to this demand, Webasto generated sales of 3.2 billion euros and an operating profit of 206 million euros last year. The order backlog amounts to an impressive 13.6 billion euros. This shows that despite the challenges, Webasto is well positioned, especially in a market where three-quarters of its business consists of roofing systems, such as car dealership reported.

Visions of the future

The new CEO Jörg Buchheim indicated that Webasto could possibly specialize more in the production of car roofs. This sector has not only grown steadily in recent years, but will also be important in the future, especially in connection with the trend towards autonomous driving. Electric heating, which in the near future may no longer be seen as a niche product but as standard equipment, also offers great sales potential.

Overall, Webasto is looking towards an uncertain but also promising future. While the renovation measures are scheduled to be completed by 2028, it remains to be seen how the negotiations with VW and BMW will develop. However, the company has proven that it certainly has a knack for expansion: the opening of the tenth factory in China in May is evidence of decisive action, and the confidence in its own products is reflected in the strong market share of over 50% in its core business.