Situation in the German Automotive Industry Slightly Improved
Overall, the situation in the German automotive industry has improved slightly. The ifo indicator for the industry rose to plus 4.6 points in January from plus 0.8 points in December. “While automakers are doing well, business worsened for their suppliers. A possible reason for this is that automakers have succeeded in getting their customers on board with price increases, whereas suppliers have not,” says Oliver Falck, Director of the ifo Center for Industrial Organization and New Technologies.
Automakers can demand their prices because the number of units produced remains below average. Although the supply chain situation has improved, the industry is still coping with bottlenecks. “The market for new cars has been swept clean, so dealerships can sell their stock to customers without offering any discounts,” Falck explains. How differently the market participants view the situation is also evident in their hiring plans: while automakers intend to start hiring again, most suppliers are being more cautious when it comes to taking on new people.
Publication
Transformation in the Automotive Industry – What Skills Are Needed?
ifo Institut, München, 2021
ifo Schnelldienst digital, 2021, 2, Nr. 12, 01-05
