|
The Mood in the Automotive Industry Continues to Deteriorate
2024-09-04 09:00:08
Automotive
Business

The Mood in the Automotive Industry Continues to Deteriorate

Image used under license from Shutterstock.com

The business climate in the German automotive industry worsened further in August, with the Ifo Institute's overall indicator for the industry falling deeper into negative territory. The outlook for the coming months is extremely poor, according to companies in the industry.

Export expectations have also declined for the third consecutive time. While the current business situation is still rated better, expectations for employment have dropped significantly.

The industry is suffering from a lack of new orders, particularly from abroad. Despite this, the current business situation in the German automotive industry is only slightly worse compared to a month ago.

The sector is experiencing a decline in business sentiment, with Volkswagen planning its first factory closure in Germany in decades. The industry, which generated €564 billion in global sales and employed around 779,662 people in 2023, is now facing a fourth consecutive decline after a brief recovery.

Related news on that topic:

Decline in Consumer Sentiment: Impact on German Economy

Recent surveys reveal a decline in consumer sentiment in Germany, with pessimism surrounding economic prospects and income levels. The retail sector foresees no revival in private consumption this year, signaling a shift from earlier positive trends. Monthly surveys of 1,600 individuals by trade associations show reduced willingness to spend and save, alongside concerns about financial stability. Consequently, a possible decrease in gross domestic product looms. The diminishing consumer confidence is also reflected in German manufacturing, as the PMI plunged to 42.4 in August, suggesting a deepening downturn with declining new orders, backlogs, and employment. This downward trend underscores a broader uncertainty among consumers and businesses, raising concerns about the economy's growth prospects in the near future.

Volkswagen Contemplates Historic Plant Closures amid Economic ... Concerns

Volkswagen's proposal to shut down German factories is met with resistance from the IG Metall union and Chancellor Scholz's administration. The economy ministry emphasizes accountability, while works council leader Daniela Cavallo anticipates a challenging meeting with top executives. CDU's Merz criticizes Germany's competitiveness in the auto industry, warning against exclusive focus on electric mobility. Volkswagen's cost-cutting measures do not include factory shutdowns, reflecting broader concerns about industrial competitiveness and political influence.

Read 14 more recent news on this topic

The press radar on this topic:

AFP
4. September 2024 um 06:05

The mood in the automotive industry continues to deteriorate

Economy
The overall indicator of the Munich Ifo Institute for the German automotive industry fell deeper into negative territory in August. According to Ifo industry expert Anita Wölfl, the mood is in a nosedive, with manufacturers and suppliers rating the outlook for the coming months as extremely poor. The indicator for export expectations fell for the third time in a row. The companies still rated the current business situation significantly better, but the employment expectations fell significantly...
tz
4. September 2024 um 06:17

Ifo: Mood in automotive industry 'in a nosedive'

The Ifo Institute reports that the mood in the German automotive industry has declined sharply. The business climate in the industry fell by 6.2 points in August to minus 24.7 points.
gmx
4. September 2024 um 06:18

Ifo: Mood in the automotive industry "in a nosedive"

Economy
Ifo Institute: Automotive industry with pessimistic expectations; business climate fell by 6.2 points to -24.7; lack of new orders, especially from abroad.
heise online
4. September 2024 um 08:09

Lack of orders sends mood of the automotive industry into a "nosedive" | heise autos

Economy
Ifo Institute measures strongly pessimistic expectations in Germany's automotive industry; Business climate drops to minus 24.7 points after a temporary slight recovery; Expectations for the next 6 months are particularly low at minus 40.5 points; current business situation only slightly worse at minus 7.2 points; Lack of new orders, especially from abroad, is reflected in workforce planning; Institute employee speaks of a "nosedive" in the mood.
CW

Account

Waiting list for the personalized area


Welcome!

InfoBud.news

infobud.news is an AI-driven news aggregator that simplifies global news, offering customizable feeds in all languages for tailored insights into tech, finance, politics, and more. It provides precise, relevant news updates, overcoming conventional search tool limitations. Due to the diversity of news sources, it provides precise and relevant news updates, focusing entirely on the facts without influencing opinion. Read moreExpand

Spotlighting today's most mentioned stocks in the media. Uncover the stories making waves in the stock market:

A closer look at the individuals who are leading today's news narratives. Find out what makes them the center of attention.

Exploring the five locations receiving the most media attention in the last 24 hours. Discover what puts these places in the global spotlight

Your World, Tailored News: Navigate The News Jungle With AI-Powered Precision!

News

All News
Politics
Technology
Economy
Business
Climate

About

About Us
Team + Mission

Legal

Cookie Settings
Disclaimer
Legal Notice
Data Privacy

Contact

Contact