Loss of attractiveness as a business location in Germany? More and more suppliers in the automotive industry are planning to shift investments abroad. The VDA sees politics under pressure.
According to the automotive industry, bureaucratic hurdles and high energy costs also burden suppliers and influence their investment plans. In a survey by the Association of the Automotive Industry (VDA) among medium-sized companies, more than a third of the companies stated that they would relocate planned investments from Germany abroad.
The VDA announced on Wednesday that their share had increased from 22 percent in a similar survey around a year ago to 35 percent. Investment targets are therefore primarily other EU countries, but also Asia and the USA. Another 14 percent said they would cancel investments completely.
The VDA warns of a loss of attractiveness for Germany as a business location. “The fact that more and more companies are shifting investments abroad is a warning signal for Berlin,” emphasized VDA President Hildegard Müller. “It is important to take countermeasures and replace regulatory small-scale with long-term strategies for more competitiveness.”
Concrete measures are needed to reduce electricity prices for industry and strengthen the competitiveness of companies abroad. According to the survey, around a quarter of the medium-sized companies surveyed expect the current situation to worsen in the coming year.
Source: Stern
