Suppliers Slashing Investments Amid Industry Struggle
Additional automotive suppliers are relocating financial resources - Automotive suppliers delaying planned investments
Hey there! Today, we're diving into the auto industry woes as German suppliers opt to pinch their wallets when it comes to investments. An overwhelming 75% of companies, as per the Association of the German Automotive Industry (VDA), are either delaying, transferring, or scrapping investment plans right here in Deutschland. That's a steep six percentage point increase since last October, my friend!
This trend has nearly 30% of companies eyeing foreign shores for their investments. The VDA explained, "The German and European automotive market ain't exactly expanding, so why waste resources on expansion investments when the market boom is happening elsewhere?" A staggering 14% of these players are even considering axing their investments completely.
The industry's also got its eyes peeled on US tariffs, and 60% of companies claim high labor costs as an almighty burden. Adding to their woes, many are still reeling from the effects of high energy prices, while stagnant sales forecasts for the German and European automotive market further dampen the spirits of more than half the companies.
The VDA clamors for a switch to less bureaucracy and lower corporate taxes in Germany, asserting, "We need a badass program to boost location attractiveness and competitiveness, complete with kickass reforms!"
The VDA surveyed around 150 automotive suppliers and medium-sized manufacturers of trailers, bodies, and buses between February 11 and 26. So, there you have it, folks—the auto industry's struggles can't be ignored, and the decision to hold back on investments could signal rough times ahead!
- In an effort to reduce investments due to the industry's struggles, German suppliers are reconsidering their vocational training programs for automotive industries, as stated by the Association of the German Automotive Industry (VDA).
- With the German and European automotive market not showing signs of expansion, some automotive companies are looking into relocating their vocational training facilities abroad to find more favorable investment opportunities.
- Tariffs and high labor costs in other countries, such as the US, are factors that some German automotive manufacturers may take into account when considering whether to maintain their current vocational training programs or switch to foreign training facilities to lower their overall expenses.
