The medium and small companies in the automotive industry in Germany are very careful when it comes to investments in the future. In this industry, things are going significantly worse than in other branches of German business.
Despite the corona crisis, things are still going relatively well for SMEs in Germany. According to consultancy firm EY, 89 percent would still be optimistic and in a good or reasonably good situation. A different picture can be seen within the car industry. Only a third is so positive about their current situation. From a financial point of view, it is now in many cases already difficult. EY calculates that 57 percent of the SMEs in the automotive industry in Germany can still operate without government support. That message Automobilwoche. The future is also by far the most pessimistic in this branch.
This is also evident from the willingness to invest. EY states that of the companies in the car industry, only 16 percent want to invest in the coming months. That is the lowest percentage since 2007. The same percentage wants to increase the workforce, the lowest percentage since 2010. The rest want to keep their hands on the purse and at the most want to maintain the current investments and workforce. EY states that one in four companies in the automotive industry describes their situation as ‘critical’. A big difference from the average, because only 1 in 14 companies across the entire SME would be in such deep trouble in Germany.