Expectations Among German Automakers Remain Pessimistic
German automotive manufacturers’ expectations deteriorated further in April. They fell to minus 30.4 points, down from minus 21.8 points in March. “Carmakers are uncertain due to the war in Ukraine,” says Oliver Falck, Director of the ifo Center for Industrial Organization and New Technologies. Expectations have also worsened among suppliers, falling from minus 39.8 points to minus 44.3 points.
In contrast, automakers are once again positive about the current business situation. “Manufacturers are able to command higher prices, which means they can increase their income despite selling fewer units,” Falck says. Their price plans climbed to a new all-time high of 86.9 points, up from 84.5 points in March. The order situation remained excellent, despite taking a dip. “A lack of intermediate products has caused manufacturers to scale back production,” Falck says. However, their production expectations are optimistic.
Suppliers are also expecting to be able to add increased production costs on to sales prices. Their price plans climbed to an all-time record high of 68.5 points, up from 64.0 points in March. Many companies along the supply chain are once again affected by a lack of intermediate products. The positive and negative assessments of the current business situation remained balanced.
