According to a survey by the DIHK, the German automotive sector is pessimistic about the future. (picture alliance/dpa)
One of the key industries in Germany, the automotive sector, is in danger of falling into a deep crisis. The current business situation and expectations for the coming 12 months in the automotive industry and among suppliers are suffering a significant slump, according to a new economic survey conducted by the Association of German Chambers of Industry and Commerce (DIHK), which dpa has seen. The DIHK will present them next Tuesday, October 29.
According to the survey, the business sentiment in the automotive industry will fall for the fourth time in a row. According to the DIHK, it has reached its lowest level in 10 years. Only 22 percent of those surveyed rate the business situation as good, 55 percent as satisfactory and 23 percent as poor. The balance of the values between a good and a bad situation is therefore minus one point. Compared to the previous survey, this is a drop of 17 points. 35 percent of the companies surveyed assess their business expectations as bad or worse.
Car manufacturers and their suppliers are faced with economic and trade policy challenges as well as other major factors. Technological change is becoming the core challenge facing the industry.
On Tuesday automotive supplier and tire manufacturer Continental made the headlines. A write-down of billions in the third quarter now puts the DAX-listed company in the red, both for the quarter and for the year as a whole.
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