In Gold Nugget 49, Staffan Zetterström and Fabian Niklas take a hard look at the economic storm shaking the global die-casting sector. From bankruptcies in Germany to collapsing volumes in Europe and the brutal rise of EVs, no region or supplier is untouched.
Why are even the “big” foundries going under? What’s behind the silence from OEMs who once sent in rescue teams? And most importantly, what can be done now to survive?
Key Takeaways:
The Foundry Industry Is in a Financial Freefall
With bankruptcies affecting big names like AE Group and Trimet Bohai, it’s clear this isn’t just a small foundry problem. The entire sector is under pressure, and OEMs are moving quickly to protect their supply chains, often by abandoning suppliers that are struggling.Car Production Has Dropped by Half in Europe
Between 2022 and 2025, European car production is down by 50%. EVs are accelerating this decline in volume per casting, replacing complex multi-part combustion designs with fewer, larger, and heavier castings.Nobody Wants to Own a Foundry
Large corporations are spinning off their casting divisions, and investors are staying away. Why? Die casting is no longer seen as a future-facing technology by many boardrooms. Even successful foundries are being split off, sold, or liquidated.OEMs Now Prioritize ‘Safe Harbor’ Over Loyalty
Gone are the days when OEMs sent in rescue teams. Today, they quickly pull tools from troubled suppliers and move them to more stable partners, often without a second chance: short fuses, fast decisions, and no second chances.Overcapacity + Automation = Trouble
Automated lines are only effective at high volumes. However, with shrinking order books, many foundries are now left with expensive, inflexible equipment and insufficient parts to operate it.
Take Action or Be Left Behind
Listen to GN49 to understand how the financial crisis is reshaping the casting world and what it takes to survive. It’s a wake-up call for foundry owners, engineers, and decision-makers across the value chain.
Thank you for listening. We’ll see you in the next episode, where we’ll continue to bring you the latest insights and updates from the casting world. Don’t forget to ask questions, write comments, or make suggestions for future episodes. Until next time, keep casting strong!
Fabian and Staffan
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