German car industry moves activities abroad

The German Association of the Automotive Industry (VDA) recently conducted a survey among automotive suppliers and medium-sized manufacturers of trailers, bodies, and buses.

According to the survey, energy costs are a major concern for the car industry and medium-sized automotive companies in Germany. 71% of companies say they are seriously burdened by high electricity prices.

More than a third of companies (35%) plan to move investments abroad, while in May 2023 this figure was 27%. Only 1% of companies surveyed want to increase their investments in Germany.

According to the survey, the places for the movement are other EU countries, Asia, and North America (in that order). In terms of investment attractiveness, Poland, in particular, took a leading position as a place for movement, being ahead of the Czech Republic and Romania.

A study by the German Economic Institute (IW) shows that companies took more money out of Germany in 2022 than ever before. In total, approximately $132 billion (€125 billion) more direct investment was withdrawn than was invested in the Federal Republic during the same period. The trend continues.