Germany’s carmakers face a ‘toxic mix’ of challenges as they emerge from coronavirus crisis
Germany’s economically-essential car manufacturing industry is emerging from a scathing period of lockdown, production halts and a slump in sales.
The sector supports tens of thousands of jobs in Germany and exports are vital to the whole country’s economy; but demand has fallen and the industry faces big challenges in the transition to greener technology, with experts telling CNBC they fear for its future.
“Carmakers contribute significantly to the German economy. Almost one million well-paid jobs depend on this sector, half of them in the prosperous south of Germany,” Economist Felix Roesel, who works at Germany’s respected Ifo institute, told CNBC Tuesday.
“The economic downturn now challenges thousands of jobs, income and tax revenues along the full supply chain,” Roesel said, warning that the auto industry faces big challenges.
“We will certainly see a decline in this industry for a couple of reasons. Many car makers cannot use their full …continued .
[Source: CNBC News]