Plant closures in the automotive industryHow can it be implemented on time?
What was the initial situation in the plant closure project?
The case study describes a German location of an international group from the automotive industry (supplier). Four years before the start of the project, the decision was made to close the production site in Germany and relocate individual areas, particularly engineering, abroad.
Initially, the company pursued the goal of finding an amicable solution together with the employees in the context of a termination. However, due to structurally weak regional conditions, many employees waited for developments. The project stagnated for years – while at the same time the relocation of production abroad was already progressing.
What were the challenges in implementing the site closure?
The main challenge was the significant delay in implementing the originally planned measures. At the start of the project, a relocation rate of 40% had already been achieved – with increasing momentum.
Other challenges were:
-Lack of progress on voluntary solutions with employees
-Time pressure due to ongoing production relocations
-Complex coordination with internal and external stakeholders
-Necessity of clean processes under labor law in accordance with the Dismissal Protection Act (KSchG)
-supporting an inexperienced HR team during a critical transformation process
What role did interim management play in the project?
The interim manager (Head of Human Resources – Liquidation) was appointed after several HR changes in order to implement the closure in a structured and targeted manner.
Her tasks included:
-Conducting a well-founded company and progress analysis
-Advising the international CEO on a collective legal solution
-Creation of a comprehensive stakeholder analysis
-Development of a clear communication plan
-Preparation of a detailed process and process description for the closure
The aim was to shape the transition from a stagnant situation to a structured, legally secure process.
What specific measures were implemented to successfully close the business?
Several key measures were taken to implement the site closure:
–Budgeting of all costs up to the final closure, including severance payments to be negotiated in the social plan
-Negotiation and conclusion of a reconciliation of interests with a list of names in accordance with Section 1 (5) KSchG
-Preparation and conclusion of a social plan
-Conducting severance meetings together with the works council
-Management of the entire operational implementation, including:
-Cooperation with the employment agency
-Organization of the delivery of termination letters
-Coordination with an inexperienced internal HR team
This structured approach ensured that all employment law and organizational requirements were met.
What results were achieved by the project?
The project was completed successfully and within the set deadlines. The most important results at a glance:
-Meetingthe deadline set by international controlling
-Complete and transparent cost planning and budget control
-Legally compliant implementation of all labor law measures
-Successful conclusion of reconciliation of interests and social plan
-Professional support for all separation processes
-Rate of0 % dismissal protection claims
The project is an example of how a complex business closure can be implemented efficiently and with legal certainty using structured interim management.
FAQFrequently asked questions
How does a legally compliant business closure work in Germany?
A legally compliant company closure requires compliance with labor law requirements, in particular the negotiation of a reconciliation of interests and social plan with the works council as well as consideration of the Dismissal Protection Act (KSchG). Structured planning and legal support are essential.
What role does an interim manager play in restructuring?
An interim manager assumes temporary management responsibility, brings in external expertise and ensures the rapid, structured implementation of complex projects such as site closures, restructuring or transformations.
Why is a structured communication plan important during plant closures?
A clear communication plan ensures transparency, reduces uncertainty among employees and stakeholders and contributes significantly to the acceptance of the measures and the smooth running of the project.
