German auto industry deepens negative outlook

Brussels – The climate of the German automotive industry deteriorated further at the end of 2024. The Business Climate Index for the German automotive industry compiled by the Ifo Economic Institute fell to minus 34.7 points in December 2024, down from minus 32.4 points (seasonally adjusted data) in November. “The automotive industry has thus slipped further and further into crisis,” says Anita Wölfl, an industry expert for Ifo.

The decline was due in particular to the significantly more pessimistic expectations, while companies rated the current situation as slightly better: Business expectations fell to minus 37.1 points, down from minus 30.9 points in November. The business situation indicator rose to minus 32.3 points from minus 33.8 points.

Many companies in the automotive industry judged their order books insufficient to fully utilize their production capacities. No positive momentum is expected from foreign activity either: Export expectations fell to minus 20.3 points, down from minus 19.1 points in November.

The downward trend in recent months has also continued with regard to workforce planning: Employment expectations have dropped to minus 36.7 points, down from minus 33.9 points in November 2024. “More companies than ever before are discussing job cuts,” Wölfl says.