The Mood in the Automotive Industry Continues to Deteriorate

The business climate in the German automotive industry worsened further in August, with the Ifo Institute's overall indicator for the industry falling deeper into negative territory. The outlook for the coming months is extremely poor, according to companies in the industry.

Export expectations have also declined for the third consecutive time. While the current business situation is still rated better, expectations for employment have dropped significantly.

The industry is suffering from a lack of new orders, particularly from abroad. Despite this, the current business situation in the German automotive industry is only slightly worse compared to a month ago.

The sector is experiencing a decline in business sentiment, with Volkswagen planning its first factory closure in Germany in decades. The industry, which generated €564 billion in global sales and employed around 779,662 people in 2023, is now facing a fourth consecutive decline after a brief recovery.