According to various business media reports, the AE Group will cease production at its two German plants at the end of 2025. Around 650 employees will lose their jobs as a result. Neither the ongoing insolvency proceedings nor efforts to find a buyer were able to save the company – a serious blow to the entire supplier industry.
Production in Gerstungen and Nentershausen to be phased out
The locations affected are Gerstungen in Thuringia with 549 employees and Nentershausen in Hesse with 134 employees. The AE Group, which specializes in aluminum castings for the automotive industry, had already filed for insolvency under its own administration in August 2024. The company cites weak demand from the automotive industry as the main reason for its difficulties.
No investor found – social plan to cushion the impact
Despite intensive negotiations, no buyer could be found for the business. “No viable offer was submitted for the takeover,” the company announced. A social plan agreed between management, the works council, and IG Metall provides for the affected employees to be covered by a transfer company. The plan is to continue paying wages for up to six months, provide training, and offer support in finding new jobs.
Causes and consequences for the industry
Insolvency administrator Romy Metzger cited several factors for the collapse: sharp rises in energy and raw material prices, geopolitical uncertainties, and a difficult environment in Germany from an investor's perspective.
The crisis at AE Group highlights the tense situation facing many German automotive suppliers. As early as 2024, cost-cutting measures at Volkswagen had put numerous suppliers under pressure. The Polish subsidiary AE Group Polska also filed for insolvency in June 2025 and has already ceased production.
