thyssenkrupp Automotive Body Solutions responds to market developments and reviews its setup of the project business

• Challenges in the automotive market require structural changes

• Review of the project business setup to sustainably improve competitiveness and profitability

• Transformation plan also includes job cuts in Germany

The integrated car body specialist thyssenkrupp Automotive Body Solutions is reviewing its setup of the project business in order to sustainably improve the company's competitiveness and profitability in a challenging market environment.

Over course of the last months, market and competitive conditions in the project business, particularly in body-in-white production lines, have once again deteriorated significantly. New competitors from Asia in particular with its low-cost base are making it increasingly difficult for automotive suppliers with a high share of value add in Germany to hold their own against the competition and win continuously profitable orders.

The measures introduced some time ago to increase efficiency and optimize processes are no longer sufficient to achieve the desired turnaround. The management of the Automotive Body Solutions business unit has therefore decided on a realignment.

In addition to the measures already initiated to increase efficiency and optimize processes, the new setup provides for a reduction of up to 400 jobs, mainly in the project business and, to a lesser extent, in the service and administration areas of Automotive Body Solutions in Germany. The Lockweiler site in Saarland is the main location for the project business of thyssenkrupp Automotive Body Solutions. The company currently employs around 1,000 people there. The primary goal is to make the entire business unit competitive in the long term and to secure the future of the German sites, in particular the main project business site in Lockweiler.

In parallel to the reduction of jobs in Germany, capacities are to be increased at more cost-competitive locations outside Germany. With a stronger international footprint, the company also ensures being close to its most important suppliers and customers

The next steps are now to be discussed and defined in depth in a joint process with the relevant employee representative bodies. The new setup of the project business is expected to take place gradually until the end of the 2024/25 financial year. This will ensure that the transition is fair for affected employees and that all customer orders can be processed and completed in accordance with the contract.

_{About thyssenkrupp Automotive Body Solutions}

_{thyssenkrupp Automotive Body Solutions is an integrated car body specialist. The product and service portfolio ranges from prototype, forming dies and body-in-white production lines construction to the serial production of body parts. The company has six development and production sites in Germany and a further six abroad. In total, thyssenkrupp Automotive Body Solutions currently employs 2,200 people worldwide. The business unit is part of the automotive supplier and service segment Automotive Technology of the thyssenkrupp Group. In the last financial year, this segment generated sales of 5.5 billion euros.}