Ifo survey
Sentiment in the automotive industry sinks to a new low
The German automotive industry is in crisis: the Ifo Institute's business climate index fell to a new low in January, weighed down by Chinese competition, US tariff threats and difficult market conditions. Experts are warning of a serious threat to competitiveness.
Munich (dpa) - Fear of the future is spreading in the German automotive industry. The Ifo Institute's monthly index for the business climate in Germany's most important industrial sector plummeted once again in January - reaching a new low of minus 40.7 points. This was announced by the Munich-based economic researchers. In December it was still minus 35 points. "The automotive industry is stuck in the crisis. Above all, it sees its competitive position in serious jeopardy," said Ifo car expert Anita Wölfl.
According to the survey, companies rated their position on foreign markets as lower than ever before, both inside and outside the EU. According to Ifo, they also lost significant ground on the German domestic market "The strong competition from China, Trump's threats to impose tariffs on US imports from the EU in the near future and the burdens at home are putting considerable pressure on the German automotive industry," said Wölfl.
Accordingly, companies rated both their current business situation and the outlook for the coming months even worse than in December. The indicator for the current situation fell from minus 32.6 to minus 39.1 points, while expectations slipped to minus 42.3 points from minus 37.3 points in the previous month.
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