Ifo Institute
US tariffs dampen mood in the automotive industry
More orders would actually be a reason for the German automotive industry to be happy - if it weren't for the US tariffs on cars and car parts, which are currently putting companies in a bad mood.
Munich (dpa) - The US tariffs are causing a negative mood in the German automotive industry - despite an improved order situation. The Munich Ifo Institute's business climate index for the automotive industry fell slightly in April to minus 30.7 points (minus 0.2). According to the index, companies assessed their business situation as more positive, but have worse expectations than in March.
The 25 percent tariffs on cars and automotive parts imposed by US President Donald Trump came into force at the beginning of April. This "virtually nipped the first positive business developments in the bud, especially in the European market", said Ifo automotive expert Anita Wölfl.
Orders from Europe cannot save expectations
Increased demand from the eurozone led to a better order backlog, but companies rated their competitive position in trade outside the EU worse than in the last two quarters. Job cuts are also continuing, but after a particularly weak March, the pace was much slower in April.
The United States is one of the most important trading partners for the German automotive industry: according to figures from the Federal Statistical Office, the USA sold more cars than any other country, accounting for 13.1% of exports. Almost one in three Porsches and one in six BMWs were sold in North America in 2024, while VW, Audi and Mercedes-Benz each accounted for 12 to 15 percent.
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