hGears Schramberg GmbH, the German subsidiary of precision gear and component manufacturer hGears AG, filed an application with the Local Court of Rottweil on September 7, 2026, for the opening of insolvency proceedings under self-administration.
Photo: hGears
According to hGears, the filing is intended to advance the necessary restructuring of the Schramberg site within an orderly legal framework and create the conditions for a viable structure for the future. The business operations of hGears Schramberg GmbH are expected to continue following the filing, with the existing management expected to remain in office and steer the restructuring process under self-administration.
Insufficient Production Volumes and High Cost Base
hGears stated that the filing was prompted by the company’s inability to meet its payment obligations due to persistently insufficient production volumes and a cost base that is too high for the current level of business.
Despite extensive structural, efficiency and cost-reduction measures already implemented, the company said it had been unable to establish the site as economically viable on its own under the changed market conditions.
In particular, the persistently weak development of the e-Bike business area, which is particularly important for the Schramberg site, has resulted in significant underutilization of the existing production structures.
The insolvency proceedings are limited to hGears Schramberg GmbH, which accounted for approximately 26% of hGears Group revenue in the first half of 2026.
Parent Company and Other Operations Unaffected
hGears AG and its other operating subsidiaries, including production facilities in Padova, Italy, and Suzhou, China, are currently unaffected and continue their business operations unchanged.
A domination agreement exists between hGears Schramberg GmbH and hGears AG. In connection with the insolvency proceedings, this may in principle result in financial effects for hGears AG, with the nature and extent depending on the further course of the proceedings.
Sven Arend, CEO of hGears AG, said that the economic and financial development had left the company with no other choice but to file for insolvency proceedings under self-administration for hGears Schramberg GmbH. However, he added that the filing also creates an opportunity to implement the necessary structural changes and develop a viable perspective for the site.
The company also said it aims to ensure operational continuity for customers and business partners to the greatest extent possible and create the conditions for a competitive setup in the long term.
hGears is a global manufacturer of high-precision gears and components, with a strategic focus on products for e-mobility. Its products include gears, shafts and other critical components used in electric drive systems for e-bikes and in electric and hybrid vehicles. The company operates across three business areas: e-Bike, [e]-Mobility and e-Tools, with production facilities in Schramberg, Germany; Padova, Italy; and Suzhou, China.
Photo: hGears
