Press release -

Situation for German Automakers Worsens Slightly

The business situation for German automakers deteriorated in July, with the indicator falling to 20.5 points, down from 22.4 points in June. This is the result of the latest ifo survey. “Car manufacturers appear to have run out of options for passing on rising material costs to consumers,” says Oliver Falck, Director of the ifo Center for Industrial Organization and New Technologies. Price expectations plummeted to 38.6 points, down from 73.1 points in June.

The order backlog for automotive manufacturers declined, falling to minus 29.0 points after being at plus 8.2 points in June. Manufacturers also cut back their production, from 15.4 points to 0.2 points. “Concerns about a possible shortage of gas and the continued pandemic-weakened Chinese economy as a key international market are impairing automakers’ future business,” Falck says. Business expectations deteriorated, falling from plus 10.1 points in June to minus 6.5 points in July.

Suppliers also remain pessimistic about the future. “Any gas rationing would hit suppliers hard, especially when it comes to energy-intensive intermediate products for manufacturers,” Falck says. Suppliers expect to further downsize their production. This indicator dropped to minus 14.9 points, down from minus 6.8 points in June. Suppliers’ price expectations remained moderate at 62.8 points, down slightly from 64.9 points in June.

 

German Automakers, ifo Institute
German Automakers, ifo Institute
Contact
Prof. Dr. Oliver Falck

Prof. Dr. Oliver Falck

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

Harald Schultz

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