Automotive Industry Crisis Shakes Serbia: Leoni Closes Malošište Plant, Kraljevo Employees Fear Similar Fate

The recent news regarding Leoni's operations in Serbia has sent ripples of anxiety through the workforce and the wider community. Following the closure of the Malošište plant, employees in Kraljevo are understandably worried about their job security. Whispers of production relocation and workforce reduction have fueled these fears, painting a grim picture for the region's industrial future.

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Employees from this company informed us yesterday that 50 workers were laid off. That another 200 layoffs are ready. And that they were unofficially told that this company is leaving Serbia.

While Leoni insists that the Kraljevo plant is performing well and operating according to plan, these assurances do little to quell the growing unease. Reports from local representatives and former employees suggest a more precarious situation, with claims of recent layoffs and the potential for further cuts. The lack of transparent communication from the company only exacerbates the uncertainty, leaving many to speculate about the true extent of the challenges.

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Approximately 300 to 500 people have left the Leoni factory since January. These are mutual contract terminations or their contracts were not extended. The situation is very serious. We will see what happens in the coming period.

The specter of becoming a "Serbian Detroit" looms large, a stark reminder of the economic devastation that can follow the departure of a major employer. This situation highlights the vulnerability of regions heavily reliant on foreign investment and the critical need for sustainable economic strategies. As a publication deeply invested in the well-being of our local communities, we will continue to monitor this developing story closely, seeking clarity and advocating for the interests of the Serbian workforce.

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Unfortunately, my information is that there is a chance that by mid-2027, Leoni factories will end up in some African country. There is a high probability, given the situation in Kraljevo, as well as in other factories, that we will become the 'Serbian Detroit'. That the city will go bankrupt.