To strengthen competitiveness: FORVIA HELLA realigns lighting production in Lippstadt

• Lighting production in Lippstadt to specialize in manufacturing the most innovative headlamp technologies
• Plant to be made competitive for the future against the backdrop of significantly changing market conditions in Europe
• In the context of the realignment, it is planned to reduce around 420 permanent staff positions at the plant
• Necessary job reductions shall be implemented as socially responsible as possible by mid-2026 at the latest

Lippstadt, 26 June 2024. The international automotive supplier FORVIA HELLA today announced structural measures aiming at making the lighting production at the Lippstadt site competitive for the future. This includes specializing the portfolio on producing the most innovative headlamp technologies as well as a respective downsizing of the plant.

This is due to structural changes in the European market environment, which are primarily caused by a significantly lower vehicle production, a persistently high cost level and changing customer and supplier structures. "These changes are fundamental, and we expect them to continue in the longer term. They are deteriorating the already very challenging economic situation for the lighting production in Lippstadt," says Yves Andres, Managing Director of the business group Lighting at FORVIA HELLA. "Despite intensive efforts in recent years, it has not been possible to lift the plant to a competitive level. As a result, we are no longer able to generate sufficient profitable new business for the plant. We therefore need to specialize the lighting production in Lippstadt in terms of technology, increase productivity levels and reduce the overall cost base."

Focus on the most innovative headlamp solutions

It is planned to focus the site on the production of the most innovative headlamp solutions. New projects for other product groups (rear combination lamps, interior and car body lighting) will no longer be allocated to the plant and current series and post-series production of these product groups will be relocated successively.

"This specialization is part of our general strategy to gradually focus the lighting plants worldwide on one product group. Therewith, we want to drive standardization forward. This will allow us to significantly increase the quantities produced per line and to improve the competitiveness of our production through economies of scale," says Yves Andres.

The realignment of the lighting production in Lippstadt also makes an adjustment of the personnel structure necessary. It results from the relocation of current projects, but also from planned measures to generally increase productivity and reduce overcapacity. Overall, it is planned to reduce around 420 permanent staff positions in the lighting production at the Lippstadt site. The adjustments in personnel shall be implemented as socially responsible as possible by mid-2026 at the latest. Talks with the employee representatives will begin soon.

"We know that this is a tough decision. However, it is the basis for offering profitable and competitive projects from the plant. Our goal is clear: turning the lighting production in Lippstadt into a benchmark in terms of quality and productivity in manufacturing the most innovative headlamps," says Yves Andres.