Fuel bike bankruptcy: Vorarlberg bicycle manufacturers fight for survival!

Fuel bike bankruptcy: Vorarlberg bicycle manufacturers fight for survival!

In an alarming trend, the bicycle industry in Austria has suffered another setback. The "Fuel Bike + Sport GmbH" from Dornbirn has applied for a renovation process with self -administration, as the auditing agency has learned. The company, which was founded in 2003 and amounts to its debts to a considerable 1.1 million euros, is aiming for a quota regulation of 30 percent for creditors within the next two years. Managing Director Oliver Mößlang is optimistic, but has already released two of the eight employees and is planning to close the showroom in Dornbirner Eisengasse. The immediate reason for the bankruptcy is a yo-yo effect as a result of the after-effects of the corona pandemic, which let the once high demand for bicycles drop after the lockdowns, while the fixed costs have risen rapidly, so OE24.

economic challenges in Europe

These developments fall into a time when not only the bicycle industry is suffering. The German economy also shows alarming signs of stagnation. The gross domestic product (GDP) is expected to be under the last year in the previous year, which indicates a long-lasting economic weakness, as reported ZDF . This worrying situation is increased by the climbs of energy prices and structural challenges for industry, which has recently suffered from a strong international competition and a lack of specialists.

The unemployment rate in Germany has risen slightly in view of these economic difficulties. With a share of six percent in October 2024, it reflects a similar level as during corona pandemic, but remains below the maximum of 2000-2010. At the same time, the ongoing economic pressure could also have an impact on mood and consumption behavior in both countries. Experts warn that the upcoming political changes, for example through the presidential elections in the United States, further increase uncertainties and hinder the urgently needed economic recovery.