One out of every three companies in the automotive sector intends to shift their investments overseas.
Over a third of mid-sized automotive companies are preparing to move their investments overseas, a study by the German Association of the Automotive Industry (VDA) concluded. This survey included trailers, bus, and body manufacturers, along with suppliers. About 37% of the 143 businesses surveyed stated their intention to shift investments, potentially heading to other EU countries, Asia, or North America.
13% of the questioned companies plan to reduce their investments. Just 1% expressed their desire to scale up their spending within Germany. VDA President, Hildegard Müller, mentioned, “An increasing number of small to medium-sized enterprises in the automotive sector are considering moving investments abroad.” Müller urged the federal government to protect the local industrial network that contributes to the German economy.
A significant share of the businesses encountered issues finding both skilled and unskilled workers. Half of the respondents acknowledged they faced shortages for specialized workers in the short and medium-term. Shockingly, 45% are relying on their private training programs to alleviate this issue.
Despite the rising scarcity of qualified and unskilled workers, nearly half of the companies (45%) are streamlining their workforce in Germany. This is partly due to the transition in the automotive industry towards more sustainable and digitally-focused practices, according to the VDA.
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- The German Association of the Automotive Industry (VDA) mentioned that a growing number of medium-sized companies in the sector, including trailers, bus, and body manufacturers, are contemplating the relocation of their investments abroad due to the automotive industry's shifting trends.
- In the automotive industry survey conducted by the VDA, it was found that each of the 143 businesses surveyed, ranging from automakers to suppliers, had a varied response, with 13% planning to decrease their investments, 1% aiming to boost spending within Germany, and 37% considering relocating their investments abroad to countries such as other EU nations, Asia, or North America.
- As a result of the relocation of investments in the automotive industry, automobile associations like the VDA are urging governments, like the German federal government, to protect local industrial networks that contribute to the national economy, providing stability and opportunities for skilled and unskilled workers within their respective countries.
