Financial Trouble for Porsche and Mercedes Suppliers Befores Year's End
Baden-Württemberg's Automotive Industry Faces Challenges Amid Transition to Electric Mobility
The automotive industry in Baden-Württemberg, Germany, continues to be a significant player, employing over 235,000 people and generating an annual turnover of around 90 billion euros. However, recent developments have cast a shadow over this thriving sector.
In June 2025 alone, nearly 300 people in the industry lost their socially insured jobs. Two automotive suppliers in the region are on the brink of collapse, with one company recently cutting around 500 jobs. Kraemer Automotive Systems GmbH, a supplier specializing in infotainment systems and digital cockpits, has gone bankrupt, affecting 18 employees.
Kraemer Automotive Systems GmbH was an important supplier in the regional automotive industry, supplying to popular manufacturers like Mercedes-Benz and Porsche. The company's bankruptcy is a reminder of the interconnected nature of the industry, where suppliers often depend on a few large customers.
Despite these challenges, Baden-Württemberg remains a leading automotive region. The region's long history and strong presence have attracted numerous supplier companies, creating an active ecosystem for suppliers and manufacturers. Events like the Automotive Suppliers’ Day BW 2025, supported by regional economic and mobility agencies, highlight ongoing collaboration and strategic planning.
The region is also a hub for startups and sustainable mobility solutions, as shown by the Future Mobility Award 2025 in Karlsruhe. Broader exhibitions and commercial vehicle shows, such as NUFAM 2025 in Karlsruhe, further illustrate an active market environment, focusing on emerging technologies and transport solutions.
Porsche's investment in new electric mobility infrastructure, such as the opening of their eighth Porsche Charging Lounge in South Baden, signals the industry's commitment to electrification and customer experience development. This infrastructure expansion near key routes supports Porsche’s growth in electric vehicle offerings.
However, specific publicly available information about supplier insolvencies and their direct impact on manufacturers like Mercedes and Porsche is not evident in the current search results. This suggests no major insolvency crisis publicly recognized at this time or at least not a dominant current topic in publicly available industry communications for 2025.
The slow transition to electric mobility and strong competition are putting pressure on manufacturers in the automotive industry. The crisis is affecting even manufacturers like Mercedes and Porsche, but the resilience and forward momentum of Baden-Württemberg, part of Europe’s most innovative automotive regions alongside Bavaria, suggest that the region will continue to adapt and innovate in the face of these challenges.
[1] Automotive Suppliers’ Day BW 2025
[2] Porsche opens eighth Charging Lounge in South Baden
[3] Future Mobility Award 2025
[4] NUFAM 2025
[5] Baden-Württemberg among Europe’s most innovative automotive regions
The automotive industry in Baden-Württemberg, facing challenges due to the transition to electric mobility, is seeking solutions through events like the Automotive Suppliers’ Day BW 2025.
Meanwhile, efforts to improve the customer experience and electrification are visibly demonstrated by Porsche's investment in new charging infrastructure, as shown by the opening of their eighth Porsche Charging Lounge in South Baden.
