German Auto Supplier Eberspächer Hit by Crisis, Reports Lower Revenue and Closes Plants

The German automotive supplier Eberspächer is feeling the sharp sting of the global economic downturn, reporting a substantial drop in revenue for 2025. The company, a specialist in exhaust technology, air conditioning, and vehicle electronics, saw its turnover fall by 6.6% to 4.9 billion euros. This decline reflects broader economic headwinds, which Eberspächer attributes to "economic uncertainties – particularly due to US customs policy and increasing geopolitical tensions."

The automotive markets worldwide have stagnated, barely maintaining previous year's levels, with Europe experiencing particularly weak growth. In response to this challenging environment, Eberspächer has implemented cost-saving measures within Germany. This has unfortunately led to the closure of its production facility in Hermsdorf, Thuringia, and the cessation of manufacturing at its site in Herxheim, Rhineland-Palatinate.

Despite these significant adjustments, Eberspächer, a family-owned enterprise, currently states that no further job cuts or short-time work arrangements are planned. The company employed just over 10,300 people worldwide at the end of 2025, with approximately 3,300 in Germany. While the company navigates these turbulent economic waters, its actions underscore the precarious situation facing many traditional industrial sectors in Germany amidst global instability.

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In Europe, growth remained weak, while global automotive markets as a whole only moved at the previous year's level.