Mood in Germany’s auto industry has further deteriorated by the end of 2024. The Ifo Institute’s business climate index for the German automotive industry fell to -34.7 points in December 2024, from -32.4 points in November. “The auto industry has slipped even deeper into the crisis” said Ifo sector expert Anita Wölfl.
The decline was particularly due to much more pessimistic expectations, while the companies evaluated the current situation slightly better: Business expectations fell to -37.1 points, from -30.9 in November. The indicator of the business situation rose to -32.3 points, after -33.8 points.
Many companies in the auto industry assessed their order book as not sufficient to utilize their production capacities. No positive impulses are expected from foreign business: Export expectations fell to -20.3 points, from -19.1 points in November.
The downward trend of the past months continued in personnel planning as well: Employment expectations fell to -36.7 points, from -33.9 points in November 2024. “More companies are now discussing a reduction in staff” said Wölfl.