Austrian Government Seeks Investor for National Automaker STEYR

AUSMAH is closely following developments concerning the fate of the similarly named STEYR automotive company and hopes the government will find a resolution to the situation.

The Austrian federal government held a regular session on October 14, 2020, addressing the issue of layoffs at Austrian companies.

According to the data presented, the economy is currently experiencing a negative wave of corporate insolvencies against the backdrop of the broader economic crisis.

Authorities in the country are therefore concerned about plans by German automaker MAN (whose majority shareholder is Volkswagen AG) to halt production at the former Steyr facility in Austria by the end of 2023. The plan would also involve laying off the entire workforce of 2,300 employees.

The Steyr truck factory was founded in 1914. In 1999, the company came under MAN’s ownership, after which production was gradually shifted toward manufacturing various automotive components to meet the needs of the German group.

During the meeting, it was noted in particular that Austria stands to lose a key manufacturing hub should the plant close. To address this, the government intends to purchase the company from Volkswagen. Negotiations are currently underway regarding the terms of a possible deal, and the search is on for potential investors from both the EU and third countries.