Suppliers are in the case of historical pessimism

The car spare parts supply in Germany is one of its most tense stages in decades, in light of the economic recession and the weakness of the growth of the country, which generated a general feeling of pessimism and anxiety about the present and the future at the same time.

According to a recent poll conducted by the German Automobile Industry Federation (VDA), about half of the participating companies reported that their current economic conditions are described as “bad” or “very bad, in a clear indication of the depth of the crisis faced by this vital sector, which is one of the columns of the German industry.

The results of the survey showed that the state of general frustration was reflected directly on the investment and employment plans within companies, as more than 60 percent of the institutions announced their intention to reduce the number of workers it has, while about 80 percent said that it will postpone their investments, transfer them abroad or completely cancel them. On the other hand, only one -fifth of companies intends to implement their scheduled investments without change, while the overwhelming majority confirmed that they are not thinking of increasing them at all.

In a related context, American customs duties on European industrial products, especially German, have a great concern for German suppliers, as more than half of the survey participants indicated that they are affected by these measures to varying degrees ranged from “medium” and strong, which threatens to undermine their competitiveness in global markets.

Commenting on the results of the survey, the President of the Union Hildegard Muller called on the German government and the European Commission to define clear priorities that support the competitiveness of the German industry on the international scene, stressing that preserving Germany’s position as a global industrial power should be at the forefront of the national and European economic agenda.

“The industrial sector needs a stable political environment and flexible legislation that encourages local innovation and production, instead of policies that drive investors abroad.”

According to the survey, about 60 percent of suppliers do not expect any improvement in the economic conditions, while 18 percent believe that things may get worse more during the coming months, while only 20 percent show something optimistic that the conditions can be improved.

158 German companies operating in the auto parts supply sector participated in this poll, during the period from 1 to 22 September, which reflects a wide representation of the various segments of the sector, which is one of the most influential sectors in the German and global economy.