Press release -

Sentiment among German Automakers Brightens Considerably

German automotive manufacturers’ expectations improved significantly in May. The indicator rose from minus 20.5 points in April to plus 38.0 points. “Automotive manufacturers continue to command high sales prices while expecting only minimal further constraints caused by the situation in Ukraine,” says Oliver Falck, Director of the ifo Center for Industrial Organization and New Technologies. The indicator for price expectations remained high at 82.6 points, down from 86.1 points in April.

Automakers, too, feel positive about their current business situation, with that indicator rising from plus 11.9 points in April to plus 17.5 points. They also continued to rate their order situation as excellent. Inventories did decline somewhat month over month, however. “Despite the continued shortage of intermediate products, manufacturers are looking to increase production,” Falck says. The indicator for production expectations remained at a solid plus 41.0 points. 

Automotive suppliers reported that their business situation is also somewhat better. Although business expectations have improved, that indicator remained in negative territory at minus 17.9 points. “Suppliers are facing higher purchase prices and hoping that they can add these onto their sales prices,” Falck says. Their price expectations indicator remained high at 62.7 points. 

Infographic, business expectations in the german automotive industry, may 2022
Infographic, assessment of the business situation in the german automotive industry, may 2022
Contact
Prof. Dr. Oliver Falck

Prof. Dr. Oliver Falck

Director of the ifo Center for Industrial Organization and New Technologies
Tel
+49(0)89/9224-1370
Fax
+49(0)89/9224-1460
Mail
Harald Schultz

Harald Schultz

Press Officer
Tel
+49(0)89/9224-1218
Fax
+49(0)89/907795-1218
Mail