German auto suppliers face wave of bankruptcies due to energy crisis: Report

BERLIN (AA) - German auto suppliers are facing a wave of bankruptcies next year because many companies may no longer be able to pay their electricity bills, local media reported.

"In the first half of 2023, we're going to see a lot of bankruptcies because companies can't pay their electricity bills," Stefan Wolf, the head of auto supplier Elringklinger, told the automotive magazine Automobilwoche.

He said he has never seen such massive cost increases in the past 25 years, adding that in addition to energy inflation, prices for plastic granules and steel have increased dramatically.

Although the automotive suppliers are trying to get compensation from their customers, the carmakers, according to Wolf, this is not 100% successful.

"The costs are directly reflected in the bottom line," he added.

He also complains about union demands for an 8% hike in salary. These demands are "out of the world," Wolf said.