Germany Logs Up to 23,900 Bankruptcies as Green Shift Drives 3 VW Plant Closures

1 articles · Updated · energynewsbeat.co · May 23

22,000 to 23,900 German corporate bankruptcies a year in 2024-2025 marked a decade high, while Volkswagen weighed closing at least three domestic plants and cutting more than 35,000 jobs.
Electricity prices often running about double U.S. levels have squeezed chemicals, steel and autos after Germany shut its last three nuclear reactors in 2023 and pressed ahead with coal phase-out plans.
37% of industrial companies are considering cutting production or moving abroad, rising to about 45% for energy-intensive firms, as BASF, Bosch and other manufacturers shift investment or trim capacity.
GDP shrank about 0.3% in 2023 and 0.2% in 2024, with only 0.2% growth in 2025, leaving Germany in its longest postwar stagnation even as renewables supplied roughly 59% of electricity.
The report argues the transition has reduced some domestic power emissions but also pushed production overseas, risking carbon leakage while eroding Germany's industrial base and export competitiveness.

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