Challenging Time
The Sentiment Among German Suppliers to the Automotive Industry Remains very gloomy Due to Weak demand in the sector, Global Trade Unrest, and Significant Job Losses at Companions. This is Reported by Automotive Industry Organization VDA in a Study. Nearly Half of the 158 Companies Surveyed Describe the Current Situation as “Bad To Very Bad.”
Accordance to vda, this gloom weighs on the willingness to invest in the sector. In Addition, 60 percent of Companies Want to Cut Jobs, and 80 percent Plan to Postpone or Cancel Investments. Activities are also being moved abroad due to the high costs in germany for things like energy and bureaucratic regulatory pressure.
Only one in Five Companies is Sticking to Current Investment Plans. Virtualy No Company, However, Plans to Increase Investments, Accordination to the VDA Study.
The Major Auto Supplier Bosch Recently Announced 13,000 Job Cuts in Germany Due to the Malaise in the sector. Other suppliers such as zf friedrichshafen and continental also reported significant job losses. At German Car Manufacturers, including Ford in Cologne and Volkswagen, Many Jobs are also Lost. Research firm Ey reported at the end of August that more than 51,000 jobs in the German automotive sector had disappeared in a year.
VDA also reports that Few Companies Expect An Improvement in Market Conditions in the Short Term. Accordance to VDA President Hildegard Müller, The German Government and the European Commission Must Do More to Strengthen The International Competitive Position of the European Automotive sector. That should be a top priority, accordance to the interest group.