Crisis hits German auto industry as capacity utilization falls

 Admin I Monday, August 5, 2024

 

MUNICH – The mood in the sluggish German car industry is deteriorating again, according to a survey published Munich’s Ifo Institute on Monday.

In July, the institute’s indicator for the business climate in the automotive industry fell to minus 18.3 points, down from minus 9.5 points in June.

“The automotive industry is thus slipping further into crisis,” said  Anita Wölfl, an Ifo Institute automotive industry expert.

According to the survey, car companies assess both their current situation and their expectations for the next three months as worse than in June. “A significant improvement is probably not to be expected in the coming months,” said Wölfl.

Ifo says plant capacity utilization has fallen to 77.7%, nine percentage points below the long-term average. Export expectations have also fallen sharply. The Ifo indicator had risen in the spring, raising hopes of an end to the economic slump.