Despite record profits and a growing market, German automakers and suppliers’ job prospects for the coming months fell to their lowest level since the 2008 financial crisis in June.
According to the results of the Business Environment Survey of the Economics Research Institute (Ifo), headquartered in Munich, the current situation index of the German automotive industry, which was 28.4 points in May, increased by 8.9 points to 37.5 points in June.
The job expectation of the sector for the coming months decreased from minus 10.3 points to minus 56.9 points.
In the statement regarding the survey, it was stated that expectations have fallen for five consecutive months, and that the level in June is not “far from minus 67.8, the lowest level of 2008”.
German automakers face inflationary pressures, slow economic growth in Europe and competition from Chinese automakers alongside Tesla.
Ifo Industrial Organization and New Technologies Center Director Prof. Dr. Oliver Falck, in his assessment of the subject, used the phrase “Automakers are experiencing a great uncertainty comparable to the first days of the war in Ukraine.”
Falck emphasized that to compensate for this uncertainty, automakers are planning to increase prices, especially in premium and electric vehicle models.