Bavarian Auto Parts Plant to Shut in 2027 as Germany Sheds Nearly Half a Million Industrial Jobs

Workers at Mahle auto supplier plant approve social plan for closure as Germany's manufacturing sector loses 486,000 jobs in three months, highlighting deep industrial crisis.

As Germany's industrial sector sheds almost half a million positions in three months, workers at a Mahle automotive supplier plant in Neustadt an der Donau have voted decisively for a social plan that sets the terms for the site's closure. IG Metall announced on June 3 that the labor dispute at the factory was over, following a June 2 and 3 ballot in which union members approved the negotiated agreement.

The social tariff contract, which came roughly three weeks after Mahle publicly disclosed its intention to close the plant, provides a structured exit for the workforce. Severance payments will be calculated based on age, length of service, and number of children. Additional provisions cover severely disabled employees and union members. Beyond direct compensation, the package establishes a transfer company to assist workers in finding new jobs and creates a hardship fund for those in particularly difficult transition situations. These measures were hammered out after the closure announcement in mid-May.

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The Neustadt shutdown is not an isolated case. In the three months through May, Germany’s manufacturing sector lost 486,000 jobs, with the automotive industry facing especially deep disruption. Forecasts suggest up to 225,000 auto-sector positions could vanish by 2035. May alone saw major cuts: 1,600 roles at ContiTech, 1,600 at Wacker Chemie, and 1,860 at BioNTech, while Porsche, Festo, and Commerzbank also announced layoffs.

Other plants in the region are closing too. BMK GmbH, a furniture components maker in Gaildorf-Bröckingen, will halt operations by the end of June 2026, citing high costs and falling orders. Wörner Medizinprodukte und Logistik GmbH in Reutlingen is shutting by year-end, affecting about 100 employees. In the printing sector, ADV-Augsburger Druck- und Verlagshaus will end production by late August 2026 after failing to find investors. Meanwhile, Atlas Group, a manufacturer of agricultural machinery, is undergoing restructuring after insolvency; a Canadian investor is expected to complete a takeover on June 8, but labor representatives warn that half of the 400 jobs remain at risk.

Trade unions are raising the alarm. On June 1, the DGB district board for Dingolfing-Landau expressed solidarity with Mahle employees and criticized current economic policy. Rising insolvency figures have prompted union demands for structural changes to protect industrial jobs. The Mahle plant itself is scheduled to close in 2027, and the newly ratified social plan provides the framework for the workforce to navigate the next two years.