The order books of the car manufacturers are well filled. The suppliers, however, complain of declining demand.
The business climate in the German auto industry has deteriorated further: The Ifo industry barometer fell from 9.8 points in September to 8.5 points in October.
“Manufacturers and their suppliers rate the current situation very differently,” said Oliver Falck, head of the Ifo Center for Industrial Organization and New Technologies, in Munich on Tuesday.
The manufacturers continued to do very well: The situation indicator rose from 29.9 to 46.2 points. The export indicator fell, but at a high level: “The sales markets abroad are still doing well,” said Falck. The manufacturers’ order books are well filled. “However, all manufacturers continued to complain about delivery bottlenecks.”
The business situation for suppliers remains bleak. The indicator improved from minus 11.5 to minus 9.8 points. The suppliers complain about a lack of orders. The demand is falling. They hardly expect any stimulus from the export business. The production outlook remained cautious with plus 4.3 points, after minus 1.3 in September. “The numbers speak of the concern of many suppliers that they will not be able to keep up with the structural change in the automotive industry,” said Falck.
Source From: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
