High energy prices are increasingly affecting companies in Germany

A significant proportion of automotive companies are planning to relocate and reduce production due to high energy costs. This is the result of a DIHK survey.

According to a survey, high energy prices are increasingly affecting companies in Germany. The German Chamber of Industry and Commerce (DIHK) spoke of a dramatic situation on Tuesday. According to a DIHK survey, 16 percent of manufacturers in Germany’s key automotive industry have already reduced their production. 17 percent want to relocate their production.

This is the result of a special evaluation of the automotive industry from a DIHK business survey, which was first reported by the “Handelsblatt”. According to the DIHK, the automotive industry is symptomatic of developments in the economy as a whole. The overall results of the economic survey are to be presented this Wednesday.

Lamps light up red

In a letter from DIHK general manager Martin Wansleben to the heads of the chambers of industry and commerce, it says: “In addition, the lights are on red for us because we can see the speed at which the financing situation in companies is deteriorating.” With a view to the federal government, it says: “The situation in our economy is dramatic – consistent crisis management and faster action are now absolutely necessary.”

After the special evaluation, business expectations in the automotive industry plummeted. Only ten percent expect better business in the next twelve months. Half have negative business expectations. 95 percent of the companies see the high raw material and energy prices as the greatest business risk. According to this, two out of five motor vehicle manufacturers speak of a problematic financial situation, and the number of suppliers is almost half. (dpa-AFX/gem)