Industry under pressure

Styrian automotive supplier DAM is insolvent

Yet more bad news from the Styrian automotive industry: with almost 16 million euros of over-indebtedness, the East Styrian supplier Dynamic Assembly Machines has had to file for insolvency. Almost 60 employees are affected - the continuation of the company is being sought.

The East Styrian automotive supplier Dynamic Assembly Machines Anlagenbau GmbH (DAM) is insolvent. On Thursday, an application for restructuring proceedings without self-administration was filed at the regional court in Graz, Kreditschutzverband 1870 announced in a press release. The company's over-indebtedness amounts to almost 15.8 million euros. Almost 60 employees and around 90 creditors are affected.

Electromobility as a major problem child
The Gleisdorf-based company has been active in the field of plant and mechanical engineering since 2006 and primarily supplied the automotive supply industry with a focus on drivetrains for e-mobility. The difficult market environment in the field of electromobility since the first quarter of 2024 was cited as the reason for the insolvency, reports APA. Investments in the automotive industry are currently being greatly reduced. Even planned and existing projects and project deadlines have been postponed indefinitely or even frozen.

The economic downturn, partly due to high inflation, is also leading to fewer cars being purchased. The massive rise in wage costs also meant that DAM was no longer able to compete economically with competitors in other countries, particularly China. The company had already reacted to the order situation at the beginning of the year and reduced its workforce. Nevertheless, insolvency could not be avoided. Efforts are being made to continue the company as a going concern.