Press release -

Situation in the German Automotive Industry Somewhat Improved in Some Cases

The business situation for German automakers and their suppliers remains strained in December, finds the latest ifo Institute survey. In December, the indicator rose to plus 1.5 points, up from minus 1.5 points in November. “Overall, the German automotive industry appears to be in a better position today than in late summer 2022,” says Prof. Oliver Falck, Director of the ifo Center for Industrial Organization and New Technologies. However, expectations for the coming months remain cautious. As late as September, the automotive industry was still expecting earnings to plummet in the second half of the year.

Confidence is returning to automakers in particular. Demand declined less than in November. The order situation stabilized and manufacturers were significantly more satisfied with their order books. “However, automakers continue to suffer from a shortage of intermediate products,” Falck says. As a result, they were unable to process some orders. They expect to be able to produce more in the months ahead. 

Among suppliers, however, the situation remains fraught. The indicators for the current situation and for business expectations remain negative in December as well. “But at least the supply of intermediate products is easing slightly,” Falck says. In December, only 55 percent of suppliers still reported problems with raw materials deliveries – the lowest percentage since this question was first asked in August 2021.

Infographic, Assessment of the business situation in the german automotive industry, ifo business survey, December 2022
Infographic, Assessment of the business situation in the german automotive industry, ifo business survey, December 2022
Infographic, Business Expectations in the German Automotive Industry, ifo Business Survey, December 2022
Infographic, Business Expectations in the German Automotive Industry, ifo Business Survey, December 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