The car industry is currently able to push through higher prices.
(Photo: dpa)
Berlin The business situation of the German car manufacturers suffering from material shortages improved in June. The corresponding barometer climbed from 5.8 to 23.6 points, as the Munich Ifo Institute announced on Tuesday in its monthly company survey. “Automakers can continue to push through high sales prices,” said Oliver Falck, head of the Ifo Center for Industrial Economics and New Technologies. The price expectations indicator remained at a high 74.7 points, down from 80.5 in May.
The manufacturers rated their order backlog significantly better. “Automakers are hoping to expand production in the coming months,” said Falck. Production expectations rose to a good 56.2 points from 45.6 in May. They also want to hire new staff. Overall, however, the car manufacturers assessed their prospects as less than optimistic: the corresponding barometer fell to 9.8 points, after 41.3 in May.
“The EU Parliament has voted to phase out combustion engines in Europe in 2035,” said Falck, giving a possible reason for this. Ford has decided against the Saarlouis production site and wants to produce electric cars in Valencia. “And there is still a major shortage of important primary products. It all depresses expectations,” said Falck.
The business situation for suppliers to the automotive industry remained tense in June. Here the barometer fell to 2.5 points, after 8.1 in May. The suppliers also rated their business prospects significantly worse. The companies reported a lower order backlog and expect to limit their production.
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The automotive industry is the largest sector of the manufacturing industry and, measured by sales, the most important branch of industry in Germany, as the Federal Ministry of Economics emphasizes. In 2021, the companies in the industry generated sales of a good 411 billion euros and directly employed almost 786,000 people.
More: New cars remain scarce and expensive