A survey conducted by the Verband der Automobilindustrie (VDA) indicates a deepening crisis in the German automotive industry.: 72% of manufacturers and suppliers plan to postpone, postpone or cancel investments that were originally intended for Germany, Les Echos reports. Of the 124 companies surveyed in January, 28% intend to transfer investments abroad, 19% intend to cancel them completely, and 25% intend to postpone them. Job cuts are accelerating: 64% of companies reduced the number of their employees in Germany last year, and 49% continue to lay off amid large–scale restructuring plans at corporations such as Volkswagen.
Hildegard Mueller, President of the VDA, warned of an irreversible decline unless urgent policy measures are taken, and criticized the European Commission's package of measures on the automotive industry as inconsistent with economic realities. Although Brussels has relaxed its co₂ emissions targets to 90% and postponed the ban on the use of internal combustion engines, Mueller argues that countervailing measures such as EU requirements for low-carbon steel are increasing the burden without restoring competitiveness.
According to the survey, 87% of companies cite the deterioration of industrial conditions in Germany — energy costs, bureaucracy and regulatory pressure — as the main reasons for cutting costs. Although some firms plan to expand into the EU (18%), China (22%) and the United States (28%) report stronger investment intentions. The VDA insists that competitiveness should be a priority, not protectionist rules "developed in Europe".
