Automotive News Europe — 2025-02-05
Automotive Industry
Sentiment in Germany’s automotive industry reached a new low in January, as companies worry about their ability to compete, highlighting the challenges facing carmakers from BMW to Volkswagen Group and suppliers including Continental.
A business climate gauge by the Ifo institute slumped more than five points to minus 40.7 last month, the Ifo economic research institute said on 5 February 2025.
Companies assessed their position on foreign markets as lower than ever before — both within and outside the European Union. They have also lost ground “significantly” on the German market, Ifo said.
“The automotive industry is stuck in crisis. In particular, it sees its competitive position in serious danger,” Ifo’s automotive industry specialist Anita Wölfl said.
German automakers joined a sector selloff this week on fears of new US tariffs by President Donald Trump that threaten to throw decades-old supply chains into question.
Levies would exacerbate an already difficult situation for carmakers grappling with weaker demand in key markets, especially for electric vehicles, and intensifying competition from Chinese automakers.
“The strong competition from China, Trump’s threats to impose tariffs on US imports from the EU in the near future and the burdens at home are putting considerable pressure on the German automotive industry,” Wölfl said.