AFL Europe is insolvent

According to a report in the Südwest Presse; difficulties with a delivery to automobile manufacturer Volkswagen (main customer for the company) triggered the insolvency. A new production structure that had been implemented meant that AFL Europe was not able to deliver on-time. As a consequence, VW demanded a compensation of around €90 million. The provisional insolvency administrator Dr. Volker Viniol told the newspaper that he will try to stabilise business activities and that the production units in Eastern Europe should be sold to strategic investors. "With a little bit of luck, we have a chance to save around half of the jobs at AFL Europe", he continued in saying. AFL Stribel Production – the electronics division – was already sold to EMS-provider Flextronics in early December and is not affected by the insolvency. Around 120 employees were taken on by the EMS-provider.