Financial Sector - The minister said that shifts in the automotive sector will entail expenses for businesses.
German corporations are considering layoffs as they face financial difficulties. Tesla, a leading electric vehicle maker, is among those reducing staff at its single European facility in Grünheide near Berlin.
Steinbach, a high-ranking official, noted that battery and material manufacturers are struggling with a lack of long-term planning certainty due to the Karlsruhe ruling on the federal budget, which eliminated a crucial climate and transformation fund. This translates to decreased financial support for business investments. Steinbach opines, "I think the industry's competitiveness will depend on whether investments are made at this time." Not all companies have the means to invest independently, prompting Steinbach to suggest reconsidering the German debt brake.
The German-Canadian company Rock Tech is unable to obtain requested funding owing to the government's taut finances. In Guben (Spree-Neiße-District), the firm intends to create a converter for manufacturing lithium hydroxide – a key component in battery production for electric vehicles and energy storage. The Chinese battery business Svolt has abandoned its plans to locate in Lauchhammer, Lusatia, citing uncertainties in the automotive industry and major adjustments in car manufacturers' strategies as reasons.
