Job prospects worsen in the German car industry

Unusually high inflation and rising interest rates in Germany cause the economy to stagnate, while the job outlook for German car manufacturers and suppliers for the coming months worsens.

According to the results of the business environment survey of the Munich-based Institute for Economic Research (Ifo), the current situation index for the German automobile industry, which stood at 34.6 points in July, decreased by 34.6 points to zero in August.

The sector’s employment expectation for the coming months decreased from -48 points to -75 points.

In the survey statement, “Almost half of automakers complained about a lack of orders as a hindrance to production in August. However, manufacturers’ order books are still full enough to cover 6 months.

INFLATION, EFFECTIVE GROWTH SLOWDOWN

Anita Wölfl, specialist for industrial organization and new technologies at Ifo, stated that some car suppliers are satisfied with the current situation, saying: “Some suppliers have special know-how that can develop alternative mobility solutions as well as electric mobility and autonomous driving. , not only in Germany but all over the world,” he said.

Meanwhile, German automakers face inflationary pressures, slowing economic growth in Europe and competition from Chinese automakers and Tesla.

On the other hand, from September 5 to 10, the IAA Mobility, one of the most important motor shows in Europe, will be held in Munich. German automakers are expected to face stiff competition from China at the show. (AA)