Leipzig-based Heiterblick, a tram manufacturing company, has filed for insolvency despite having full order books. The company, which employs 250 people, is struggling with increased raw material costs, making it unprofitable to fulfill long-term contracts at previously agreed prices.

This issue is not unique to Heiterblick; many companies with viable business models are facing similar challenges due to inflation, disrupted supply chains and tariffs. According to Creditreform, corporate insolvencies are rising, particularly affecting midsize companies that form the backbone of Germany's export economy. Heiterblick views the insolvency as an opportunity to renegotiate contracts and stabilize the company, preserving engineering expertise in the region.

This video summary was created by AI from the original DW script. It was edited by a journalist before publication.