The automotive industry of Germany is facing a crisis, and suppliers are feeling the impact. Spring manufacturer Erwin Lutz has now filed for bankruptcy.
Auto parts supplier Federnfabrik Erwin Lutz, based in Eningen unter Achalm near Reutlingen in Baden-Württemberg, has declared bankruptcy. The company filed for insolvency on August 9 at the Tübingen District Court, as multiple media sources now report. Reutlingen lawyer Jürgen Sulz has been appointed as the provisional insolvency administrator.
Company history and specialization
Erwin Lutz founded the spring factory in 1966 in Eningen, specializing in technical springs and bent parts. The product range includes various types of springs such as compression springs, tension springs, torsion springs, wire bent parts, and special components like leaf springs and magazine springs.
These products are used in the automotive industry and mechanical engineering. Currently, even large corporations in both sectors are struggling, which affects the order situation for suppliers. “Customers from the automotive and mechanical engineering industries recently ordered little from large framework contracts,” insolvency administrator Sulz told the “Reutlinger Generalanzeiger.”
All employees terminated
Adding to the bad news, reports suggest that before the insolvency application was filed, a decision to shut down the factory was made, and all 20 employees were given notice. Until the terminations take effect, salaries are now covered by insolvency funds. “These have already been pre-financed for the months of July and August 2024 and paid out to the employees,” Sulz stated.
The company left family ownership in 2022. Until then, it had been run by the heirs of founder Erwin Lutz. The current managing directors are Tobias Ulrich and Tanja Knörzer, as reported by the platform bw24.de.
