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Mercedes threatens German plant closure unless labour cost cuts stick

Europe

Wirtschaftswoche (4 Sep), citing multiple company insiders, reports Mercedes management told works councils that if they do not help cut German labour costs sharply, the board would build a new plant in Eastern Europe and make a German production site redundant. No plant named; no board decision yet. Demands include ~5 extra weekly hours without pay and a review of bonuses (Christmas/vacation). June staff letter already said German plant capacity “significantly exceeds demand.” Kecskemét (Hungary) capacity has been doubled to ~400k units/year with factor costs cited ~70% below Germany. Mercedes declined to comment on “ongoing talks.”

Companies Mercedes-Benz

Source: Wirtschaftswoche (4 Sep 2026) · t-online

Volkswagen Supervisory Board unanimously approves Future Plan 2030

Europe

On 3 September the Supervisory Board approved Future Plan 2030. Targets: ~9m annual sales, 9% operating margin by 2030 (~€31bn operating result), ~€135bn CapEx/R&D 2027–2031, ~50% model-portfolio cut by 2035, ~75% less offering complexity, and ~50,000 further workforce adjustments Group-wide. On production, the Board acknowledges European capacity exceeds demand by more than 500,000 units and that competitive future allocation for Emden, Zwickau, Hanover and Neckarsulm cannot currently be secured on a staggered basis from 2031–2034. A sustainable European production concept is due by end-June 2027; alternative uses assessed in parallel.

Companies Volkswagen

Source: Volkswagen Group PR (3 Sep 2026) · Electrek

Jaguar Land Rover opens voluntary redundancy programme; UK minister meets bosses this week

Europe

JLR confirmed to BBC it is opening a voluntary redundancy programme for salaried and management staff to “simplify” and build resilience. Headcount not confirmed by JLR; The Times previously put up to ~4,000 at risk. Context: £1.7bn multi-year cost-out after the 2025 cyber attack (~27% production hit; ~£1.9bn cost estimates in coverage), US tariffs, softer sales. Business Secretary Jonathan Reynolds meets JLR and Unite early this week; he ruled out a bailout but left room for “long-term investment.” JLR employs ~30,000 in the UK.

Companies Jaguar Land Rover

Source: BBC · The Guardian

Aptiv unifies interconnect portfolio: Winchester → Aptiv Interconnect; IAS → Aptiv High-Voltage Technologies

Global

Aptiv announced (around 1–3 September) that Winchester Interconnect becomes Aptiv Interconnect and Intercable Automotive Solutions becomes Aptiv High-Voltage Technologies. Aptiv Connection Systems keeps its name. Framing: one customer-facing interconnect + HV distribution story (connectors, harness assemblies, high-speed data, busbars) while products/teams/commitments stay. Builds on Winchester (2018, $650m) and IAS (2022, 85% for €595m); Aptiv completed buyout of remaining 15% IAS stake end-June 2026.

Companies Aptiv

Source: Gasgoo (citing Aptiv, 4 Sep) · Aptiv Interconnect Technologies

BMW Regensburg installs “battery marriage” line for Neue Klasse readiness

Europe

During an 8–30 August shutdown, Regensburg installed a new energy-module pre-assembly so the HV battery can be robot-joined to the body at the start of final assembly (“battery marriage”), with sequenced feed from a high-bay warehouse via conveyor bridge. Hundreds of press / body / paint / assembly / logistics changes aim to run ICE, PHEV and BEV on shared lines (~1,400 X1/X2 per day; ~342.5k units in 2024). Neue Klasse SOP at Regensburg still “2H of the decade”; trade reporting points to next-gen iX1 around late 2027.

Companies BMW

Source: electrive (4 Sep 2026) · BMWBlog

LEONI transforms Kitzingen hub into Innovation Collaboration Center

Europe

On 28 August LEONI relaunched its former Innovation Industrialization Center in Kitzingen as the Innovation Collaboration Center (>3,000 m²). Focus: cross-functional product + process development, automation (e.g. Smart Manufacturing Cell for taping/clip assembly approved for serial), flat wiring, flexible lines, and AI/digital manufacturing studies — plus customer/supplier/university collaboration on zonal architectures and next-gen electrical systems.

Companies LEONI

Source: LEONI story (28 Aug 2026) · LEONI ICC page

TE Connectivity to acquire HENN plastic air/fluid connector unit — close due this month

Europe

TE signed (4 Aug) to buy HENN Connector Group’s plastic air/fluid connection systems unit; close expected in TE’s FY Q4 ending September 2026. Portfolio to run as HENN Fluid Line with a Dornbirn, Austria office. Focus: VDA/SAE quick-connects and integrated assemblies combining electrical connectors with water/air/coolant interfaces for EV thermal management and sensor cleaning. Terms undisclosed; HENN keeps premium metal couplings.

Companies TE Connectivity

Source: TE Connectivity PR · ChargedEVs

BYD scales China wire-harness capacity at Fufeng toward ~10,000 workforce

Asia

Local authorities (reported 2 Sep) say Baoji BYD Industry at Fufeng employs ~7,200 and aims to hire ~2,200 more toward ~10,000. Wire-harness lines relocated from Xi’an now total 87 (was >60 in 2025 disclosures); goal is BYD’s largest, most automated China harness plant feeding the Xi’an vehicle base (~100 km). New frame-stamping line started 26 Aug (target 100k vehicle-sets/month).

Companies BYD

Source: Gasgoo (2 Sep 2026)

Xiaomi Auto signs eight German dealer groups; Europe sales targeted for 2027

Europe

At IFA Berlin (3 September), Xiaomi signed MOUs with eight German dealer groups (Ernst Dello, Autohaus Dinnebier, Emil Frey Germany, Fett & Wirtz, Hahn, LUEG Mobility, Penske-Jacobs Innovation, SPT Avior) for retail and aftersales. Germany first; broader Europe to follow. Company cites Munich R&D and “long-term investment.” Vehicles for 2027 expected as imports under EU China-BEV tariff regimes unless local assembly is announced later. Xiaomi claims >700k China deliveries since Mar 2024.

Companies Xiaomi

Source: Electrek · Gasgoo

Stellantis folds DS leadership under Citroën (from 1 September)

Europe

From 1 September Xavier Chardon leads both Citroën and DS; Xavier Peugeot moves to Jeep Europe. Fits FaSTLAne 2030: DS (and Lancia) managed as specialty brands under larger regional houses. DS Europe registrations ~29k in 2025 (−22.5% YoY) vs Citroën ~353k. Same day, Fiat/Abarth/Lancia consolidated under Arnaud Belloni. DS N°7 (STLA Medium EV) due on sale from autumn.

Companies Stellantis

Source: AutoNext (1 Sep 2026)

VW wiring-harness leadership: modular connectors as SDV enabler

Global

In an ADT Media interview around Bordnetzkongress 2026, Melanie Sohnemann (VW Head of Sub-Department Wiring Harness Components and Energy Distribution) argues the decisive architectural choice is the degree of connector/interface standardisation — a modular toolbox for cross-brand reuse and faster ECU integration. Biggest five-year challenge: SDV complexity while cutting cost/weight/time under zonal architectures. Strongest enabler: “cross-brand governance” plus requirements discipline so teams do not redesign connectors per ECU.

Companies Volkswagen

Source: ADT Media / VW interview

LEONI Romania: Arad / Beiuș reorganization; Marghita closure track

Europe

Ongoing through 2026 — peer footprint still moving. LEONI Wiring Systems Arad is reorganizing under volume/cost pressure. Marghita plant closure in H1 2026 (~190 employees). Arad + Beiuș workforce reductions; company stated up to ~700 affected across the Arad perimeter. Other LEONI Romania plants said to continue normally. Pair with Kitzingen ICC investment: high-cost innovation hub + low-cost capacity trim.

Companies LEONI

Source: LEONI Romania notice

ACEA (Källenius): push for stronger 2030 CO₂ flexibility and Europe re-industrialisation

Europe

ACEA President Ola Källenius’ open letter to EU leaders calls for (1) incentive-based re-industrialisation (energy costs, permitting, battery scale-up) plus FTAs (India, Mercosur), (2) stronger 2030 cars/vans CO₂ compliance relief than the Commission’s proposal (extra help for vans; earlier sustainable-fuels compensation), and (3) reversing EU production decline via fleet renewal and regulatory batching. Frames Europe’s industrial electricity as far above US/China levels.

Source: ACEA news · ACEA open letter PDF

Breaking

Breaking

paragon (DE) insolvency

paragon (DE) files for insolvency — 552 jobs, six German sites
Listed German automotive Tier-1 paragon GmbH & Co. KGaA (Prime Standard; electronics, body kinematics, battery/BMS) today filed insolvency petitions at the Paderborn Local Court for itself plus subsidiaries paragon electronic GmbH and paragon movasys GmbH. Trigger: Indian investor Tejascore Techsystems Inc. failed to disburse a committed €12m loan (plus a further €6m on demand) after a June term sheet; management alleges deceit/fraud suspicion. ~552 employees at Delbrück, Suhl, Landsberg am Lech, Limbach, Nuremberg, St. Georgen affected; Croatia/China units excluded. Management says the business is profitable with a large OEM backlog (~94% sole-supplier revenue) and expects operations to continue under a provisional administrator.

Source: EQS Ad-hoc via Finanzwire (7 Sep, 11:51 CEST) · EQS Corporate News · BondGuide

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