Ifo expert optimistic about the automotive industry despite the crisis

Ifo expert Anita Wolf remains hopeful for the German automotive industry despite the ongoing crisis. The industry has shown resilience in dealing with supply chain problems and has made innovations in electric drives.

However, challenges still exist in the areas of electromobility, dual structures, and changing customer expectations, particularly in China. Export expectations have fallen, but the ADAC believes that the promotion of company cars is a positive step.

Market leader VW is cutting jobs, and the industry as a whole is suffering from the general economic situation. Suppliers have demonstrated adaptability, but there is still a long way to go.

Despite these challenges, there is optimism that tax incentives for electric company cars could help boost the industry. The difficult economic situation has led to a decrease in car sales in Germany, as well as internationally.

The VDA chief economist Manuel Kallweit notes that the weak automotive market is part of a larger global trend. In order to address the crisis, VW and the automotive industry as a whole need to focus on the electric mobility transition and reduce their dependence on the Chinese market.

It is also crucial for the government to support the market uptake of electric vehicles and invest in infrastructure, digitalization, skilled labor, and innovation.