economy

Car industry no longer growth engine of German economy

Germany’s mighty car industry, which has been hit particularly hard by the coronavirus pandemic, is no longer the engine driving the country’s economy.

“For the first time in a decade, the auto industry is facing noticeable personnel adjustments and will initially fail as a growth engine for Germany,” says a new study by the German Economic Institute (IW), reported exclusively by Handelsblatt.

The results of the IW study are likely to hang over the meeting on Tuesday this week between the German government and the heads of the countries powerful car companies and automotive suppliers.

Already before the global COVID-19 pandemic hit, the automotive industry was struggling with overcapacity, as well as the need to invest billions to switch to electrification, and get their fleet emissions down in the face of tough new EU emissions standards.  

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