Battery maker Varta has pulled off a stunning crash.
At the height of the pandemic, the Swabians were still shining because they supplied the small batteries for Apple's wireless Airpod headphones and benefited from the high demand for consumer electronics.
The fact that Varta kept almost the entire value chain in its own hands seemed to be an important part of the success story.
The signs pointed to expansion.
On the one hand, the current misery is due to the high cost pressure, which has a lot to do with expensive raw materials and horrendous energy prices.
On the other hand, it is also homemade.
The longtime Varta boss Herbert Schein was late in setting the course for entry into car batteries.
Too late?
Schein had to vacate his position at the top of the company early in September and is to concentrate fully on the car business.
His successor has now put the construction of a corresponding factory on hold because there are no orders.
Among other things, employees on short-time work and shareholders without dividends have to pay for it.
The cost-cutting program is tough but necessary.
The road for Varta back on the road to success will be rocky.