More bad news from the Styrian automotive industry: With almost 16 million euros in excessive debt, the East Styrian supplier Dynamic Assembly Machines has to file for bankruptcy. Almost 60 employees are affected; the aim is to continue the company.
The East Styrian automotive supplier Dynamic Assembly Machines Anlagenbau GmbH (DAM) is bankrupt. On Thursday, an application for a restructuring procedure without self-government was filed at the regional court in Graz, the Credit Protection Association 1870 announced in a press release. The company’s excessive debt burden amounts to almost 15.8 million euros. Almost 60 employees and around 90 creditors are affected.
Electromobility as a major problem child
The Gleisdorf-based company has been active in the field of plant and mechanical engineering since 2006 and supplies primarily the automotive supply industry with a focus on drivetrains in e-mobility. The APA reports that the difficult market environment in the field of electromobility has been cited as the cause of the bankruptcy since the first quarter of 2024. Investments in the automotive industry are currently being significantly scaled back. Even planned and existing projects and project dates have been postponed indefinitely or even frozen.
The economic weakness, partly due to high inflation, also means that fewer cars are bought. The huge increase in wage costs also meant that DAM could no longer compete economically with competitors from other countries, especially China. At the beginning of the year, the company responded to the order situation and cut staff. However, bankruptcy could not be avoided. The aim is to continue the company.
Source: Krone
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