German companies are moving their plants or part of their production abroad, including to Poland. He did this, among others. Mercedes, the leader in brake production – the Knorr-Bremse company or the Gubor Schokoladen confectionery factory. The VDA Association points out that dark clouds are gathering over the moto industry and criticizes Brussels' decisions.
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Germany's position as the center of the automotive industry threatens to collapse due to the outflow of investments and jobs abroad – warns the VDA industry association on Tuesday and appeals to the EU.
“Germany is going through a huge crisis as a business location,” said VDA president Hildegard Mueller, quoted by Reuters.
See also: Mercedes wants to close an important plant. Production is to be moved to Poland
Companies are fleeing Germany. New data
A VDA study of small and medium-sized German companies from the entire automotive supply chain published on Tuesday showed that 72 percent companies plan to limit their investments in Germany:
- by moving them abroad (28%),
- postponing them (25%)
- or canceling completely (19%).
“These investment decisions are already impacting employment data,” Mueller said, referring to the results of the survey conducted Jan. 11-25.
See also: Germany closes a sweets factory. Production moved to Poland
Job cuts in Germany
Almost two-thirds of the 124 companies surveyed in Germany reduced their workforce last year, and 87 percent of them indicated an unfavorable competitive situation.
Currently 49 percent companies are reducing employment in Germany, compared to only 7 percent abroad.
German auto parts suppliers are grappling with falling orders, fierce competition from abroad and a difficult transition to electric vehicles and software, as top automakers such as Volkswagen and Mercedes, as well as suppliers Bosch, ZF and Aumovio, announced tens of thousands of layoffs.
The number of jobs in the German automotive industry is the lowest since 2011.according to government data from November.
See also: A well-known company flees Germany. They move production to Poland
Problem with electrics
“The migration of investment and jobs will not be without consequences for our country's prosperity and its social and political stability,” Mueller said.
She also criticized a package of EU measures aimed at supporting European car manufacturers in the process of switching to electric cars and more environmentally friendly production.
“As a motoring country, we absolutely cannot be satisfied with the current proposals.” Mueller said, calling for market incentives instead of regulatory obligations.
The VDA Association calls on Berlin and Brussels to focus on measures to stimulate economic growth.
Recently, we wrote about the problems of the international automotive giant Stellantis, which lost over $26 billion due to a failed investment in electric cars.
Source: Reuters
