Brose in loss: Declining production and restructuring costs

Three Times Worse Auto Supplier Brose Suffers Unexpectedly High Million-Euro Losses

2025-05-26 Source: dpa | Translated by AI 1 min Reading Time

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Brose is severely shaken as the family-owned company had to end the past year with a loss of 142 million euros (approx. 161 million USD).

The Upper Franconian automotive supplier Brose is plagued by losses far more than was assumed at the end of last year ...(Image: Brose) — The Upper Franconian automotive supplier Brose is plagued by losses far more than was assumed at the end of last year ...
(Image: Brose)

The causes of the high loss at Brose were on the one hand the declining production and on the other hand the costs of ongoing restructuring, it is said. The loss was thus almost three times higher than expected at the end of December. Sales fell by 200 million euros (approx. 227 million USD) in 2024 compared to the previous year (to 7.7 billion euros, approx. 8.7 USD). The outlook for the current year is anything but rosy, as Brose expects no growth in the core business and therefore anticipates stagnant sales.

The Chinese Prefer to Buy from the Chinese

A main problem is found in the China business, on which Brose had placed great hopes a few years ago. However, Chinese car manufacturers increasingly prefer to use local suppliers. This presents Brose with great challenges there, commented CEO Stefan Krug on the situation. The Coburg (Germany)-based company has already announced extensive cost-cutting measures and job cuts. In Germany, around 700 jobs are to be cut. The three locations Coburg, Bamberg/Hallstadt, and Würzburg (all located in Germany) are being reviewed, but it is already feared that the Würzburg plant may be closed. In total, Brose employs 32,000 people in 24 countries.

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Date: 08.12.2025

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