After 228 Years Of Establishment, Emblem Mercedes-Benz Manufacturer Rolls Out

JAKARTA The German company, which is the producer of the iconic emblem of the Mercedes-Benz star, has officially declared bankrupt. This decision cannot be separated from the impact of the decline in product demand and the prolonged crisis that hit the automotive industry in Europe.

German auto-parts maker Gerhardi weathered Napoleon’s invasion, the Great Depression and two world wars. But Europe’s car slump has brought the plastics manufacturer to its knees. https://t.co/TcSIay2rOb

— Bloomberg (@business) December 21, 2024

German auto-parts maker Gerhardi weathered Napoleon’s invasion, the Great Depression and two world wars. But Europe’s car slump has brought the plastics manufacturer to its knees. https://t.co/TcSIay2rOb

First reported by Bloomberg, earlier this Sunday,glonier bankruptcy also led to layoffs of 1.500 employees in Germany. This situation is a major blow, considering the company has existed since 1796, starting as a producer of metal products before evolving into an automotive component supplier. In addition to the iconic stellar emblem, Libi also produces grip, steering wheel, and trim chrom for Mercedes-Benz vehicles.

However, last month, the long journey of more than two centuries ended tragically. The growing cost of production and declining demand are the main reasons behind the Bankruptcy of Scanhi. Now, as many as 1,500 employees of the company have lost their livelihoods.

This phenomenon reflects the crisis that has hit the automotive supplier sector in Europe. Several other major companies are also facing heavy pressure. Call it Forvia SE, a parts supplier for Volkswagen and Stellantis, which cut thousands of jobs. Webasso SE, the auto roof company, is now in debt of up to a billion euros. Even Northvolt AB, a Swedish battery manufacturer, is also experiencing financial difficulties.

Not only that, auto giants such as Volkswagen, Stellantis, and Ford were forced to make massive cuts. Volkswagen, for example, is rumored to be closing at least three factories in Germany, laid off tens of thousands of employees, and cut wages by 10 percent.

Interestingly, Scanhi isn't the only supplier of the Mercedes-Benz emblem that has gone out of business in recent years. In 2022, a similar fate befell BIA Forst, a vertically installed emblem manufacturer on premium models like S-Class.

The European auto industry is now at a major crossroads. With increasingly complicated economic challenges and changes in technological trends, the fate of thousands of workers and component suppliers continues to be in the spotlight.