Mercedes Star Maker’s Demise Shows How Auto Pain Hits Suppliers

Germany’s Gerhardi Kunststofftechnik GmbH weathered Napoleon’s invasion, the Great Depression and two world wars. But Europe’s current auto slump has brought the plastics manufacturer to its knees.

Founded in 1796, Gerhardi started out making metal products before riding Germany’s postwar automotive boom. Its mastery of injection molding and hot stamping made it a trusted supplier of grills, handles and chrome trims for Mercedes-Benz Group AG. But last month, after a protracted period of rising costs and withering demand, the company filed for bankruptcy, plunging its 1,500 employees into an uncertain future.