Industry crisis
More car suppliers postpone investments
The economic crisis is pressing the joy of investment by industry in Germany. The mood among the car suppliers is also increasingly clouding.
Due to the poor economic framework, the German auto suppliers are increasingly reluctant to invest with investments. According to a survey by the automotive industry (VDA), around 75 percent of companies are planning to postpone, move or delete investments in this country. That was six percentage points more than in a survey in October last year.
Almost 30 percent therefore think about relocating abroad. “The prospects for the German and European automotive market do not make expansion investments necessary, market growth takes place elsewhere,” said the VDA. According to the survey, another 14 percent plan to delete investments entirely.
Big concern about US tariffs
Almost 60 percent of the companies stated high labor costs as a central burden. Many are still affected by high energy prices. In addition, low sales expectations for the German and European car market for more than half of the companies play a role in their investment planning.
The US-customs policy under President Donald Trump is also concerned about industry. “86 percent of the companies surveyed assume that the tariffs of the United States will affect numerous states and regions,” it said. The VDA again emphasized the need for less bureaucracy and lower corporate taxes in Germany. “We need an ambitious program for location attractiveness and competitiveness with concrete reforms,” said VDA President Hildegard Müller.
The association interviewed around 150 automotive suppliers and medium -sized manufacturers of supporters, buildings and buses between the 11th and 26th February.
dpa
Source: Stern
