The current economic landscape is compelling German auto suppliers to reassess their investment strategies. Approximately 75% of these companies are considering postponing or canceling planned investments due to soaring labor costs and energy prices.
VDA Chairwoman Hildegard Müller highlights the detrimental influence of US tariff policies, cautioning against their potential harm to Germany's automotive sector. Additionally, many firms are grappling with low growth expectations and are contemplating relocating operations abroad.
As the industry faces these challenging conditions, the outlook remains uncertain, with a significant portion of businesses bracing for potential insolvencies. Despite these adversities, there is cautious optimism, as developments in geopolitical tensions and financial aid packages may provide some relief.
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