Frauenthal checks drastic measures: Selling the automotive division?

Frauenthal checks drastic measures: Selling the automotive division?

Frauenthal, Österreich - Frauenthal, a listed Viennese sanitary wholesaler and car supplier, faces important decisions regarding his automotive division. The company checks the sale of this business area to make the future strategic orientation better. A consulting company was involved in analyzing the situation and determining whether an alternative strategic owner would be more suitable to cope with the challenges in the automotive division and to implement the long-term potential. These considerations are no coincidence: While sales of 1.014 billion euros were generated on the overall market, Frauenthal recorded a loss of 5.1 million euros in the 2024 financial year, whereby the automotive division suffered a decrease in sales from around 12 percent to 207.3 million euros href = "https://www.oe24.at/businesslive/frauenthal-prueft-verkauf- von-automotive- und-

The situation is additionally tightened by a continuous decline in auto production of European manufacturers. The staff in the automotive division fell 14 percent to over 1,000 people. According to the annual report, Frauenthal has five production sites in four European countries as well as one in China and the USA. The company offers press, punching and welding components as well as compressed air tankers. This diversified production could be an advantage in the current market climate.

challenges of the automotive industry

The German automotive industry is considering considerable challenges in 2024. Large manufacturers such as Volkswagen, BMW and Mercedes-Benz report a decline in sales of 2.8 percent compared to the previous year, while 16 leading automobile manufacturers worldwide recorded growth of 1.6 percent, reports it-boltWise . Weak demand for electric vehicles and high development costs for their production burden the manufacturers' balance sheets. Commercial conflicts, especially through new tariffs on auto imports to the USA, also increase the pressure on German companies. Austerity measures alone are not sufficient to stabilize the financial situation.

In addition, the competition from Asia and the USA shows their strength. While German manufacturers are struggling with internal problems, Asian and American carmakers benefit from more stronger demand and more efficient cost structures. In order to remain competitive, German car manufacturers have to rethink their strategies and concentrate more on the brand core, adaptation to the changing market conditions is essential.

market development and technological change

The challenges are not new, but have been in existence for several years and will probably continue to continue in the future. The sales of combustion vehicles, especially in China, the key market for the German manufacturers, shows the first signs of weakness. According to Statista , the German automotive industry also faces strict specifications, including a impending prohibition of burner vehicles in the EU from 2035.

manufacturer must comply with your CO₂ emissions; Volkswagen and other brands narrowly met these requirements. In Germany, the demand for electric vehicles has fallen after the environmental bonus has expired, which complicates compliance with the fleet-limits. Suppliers such as Continental are also under pressure, since many of them focused on the previously dominant combustion technologies. The future of the industry is largely shaped by technological innovations, research investments in battery technology, autonomous driving and the development of networked cars.