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Auto suppliers in crisis mode: 76% stop investments in Germany!
The auto industry and its suppliers are slowing investments due to weak demand, high costs and difficult credit.
Auto suppliers in crisis mode: 76% stop investments in Germany!
The automotive industry in Germany is currently facing significant challenges that are having a negative impact on suppliers. According to information from Automotive industry In a recent survey by the Association of the Automotive Industry (VDA), 76% of the suppliers surveyed planned to postpone investments in Germany, relocate them abroad or even cancel them altogether. These alarming changes mean that the proportion of companies that no longer want to make any investments has increased from 14% in February 2025 to 20% now.
The survey, which was carried out among 136 medium-sized automotive companies by mid-May 2025, also shows that only 24% of companies are planning to relocate their investments abroad. This is down from 29% in February this year. VDA President Hildegard Müller criticizes the situation and calls for political action to counteract the existing circumstances.
Investment brakes and reasons
A variety of factors contribute to the current slowdown in investment. According to the survey, 58% of respondents report weak sales expectations in Europe. In addition, high production costs in Germany are seen as a hindrance by 16% of companies, while 15% cite the difficult financing conditions as a reason for their hesitation in their willingness to invest. The reluctance of house banks is also worrying, as 69% of those surveyed say they have difficulty granting loans.
The assessments of the current situation are pessimistic. 42% of companies rate the situation as bad. In the survey, only 31% expressed hope for an improvement within the next twelve months, while 26% expected further deterioration. These assessments raise fears about the future stability of the industry.
In summary, it is clear that the challenges facing automotive suppliers in Germany must be taken seriously. How Mirror reports, it is crucial that politicians react promptly in order to improve the framework conditions for companies and increase the willingness to invest.