The Schneider 2025 cost-cutting and transformation programme is probably not only unique in the corporate history of German automotive parts supplier Dr. Schneider (Kronach; www.dr-schneider.com), but is also very rare for a family-owned enterprise.

The central element is for Sylvia Schmidt and Annette Schneider, two daughters of the company’s founder who are now shareholders in the firm, to take a strategic investor on board to ensure growth, something considered essential for the company’s survival. At the same time, the firm’s activities both in North America and Asia are to be expanded to a greater extent than before. Adjustments are also to be made with regard to personnel. That, too, has never happened before at the company.

Exactly how a new investor will be integrated into the company is unclear. But there have apparently been many serious expressions of interest.

In the opinion of CEO Thomas Stadelmann, the company lacks the necessary “size and financial muscle” to carry out the plans on its own. A spokesperson declined to tell Plasteurope.com what share of the business the two sisters would be willing to surrender. Actually parting with the majority is unlikely considering their previously displayed responsibility for the family business and the jobs connected with it.

Nevertheless, since the beginning of 2022, the situation seems to have worsened. In February, the company said it wanted to initiate an austerity programme to create financial scope for investment. At that time, there was no talk of searching for an investor.

It is possible there is a connection here with the company’s economic situation. Although turnover in 2021 recovered slightly by 3.4% to EUR 451 mn after a considerable fall in the previous year, the lower sales volumes, more expensive procurement, and numerous new projects were said to have led to a “significantly” negative result last year. Stadelmann reported as early as 2020 that the company was in the red.

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To reduce its dependency on the European market, Dr. Schneider is building a second injection moulding facility in the United States (see Plasteurope.com of 06.12.2021). However, the organic expansion does not seem to be progressing fast enough in the current situation to absorb the downturn on the European market. Apart from that, the company has also expanded its production in Poland.

Dr. Schneider on 7 September filed for insolvency on behalf of the group’s German companies, a move that affects around half of the 4,000 staff it employs worldwide. Production at both its headquarters facilities in Kronach as well as its plants in Tschirn and Föritztal will continue with no restrictions. The German car parts manufacturer said its sites in China, Poland, Spain, and the US are not affected.

The law firm in charge of the proceedings noted that important customers from the automotive industry have already signalled their support.