ifo Institute: Gloomy Outlook for the German Automotive Industry
Prospects for the German automotive industry have deteriorated significantly as a result of the coronavirus crisis. This is the result of the latest survey conducted by the ifo Institute. Business expectations for the coming months plummeted from minus 19.7 points in February to minus 33.7 points in March. The industry’s demand index sank to minus 30.6 points, having been at minus 13.8 points in February. Export expectations took a nosedive from minus 17.3 points in February to minus 42.7 points – its lowest level since March 2009.
The index for production expectations also fell in March, from plus 4.2 points to minus 35.9 points. Of the companies surveyed, 41.3 percent expected to introduce short-time work in March, compared with 19.7 percent in December 2019. Inventories of unsold cars grew once again, with the balance rising to plus 14.1 points in March, up from plus 7.6 points in February. Order books shrank from minus 7.2 points in February to minus 12.4 points in March.
