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German Auto Body VDA Sees 5% fall in Global Auto Sales in 2019

Auto News - Published on Tue, 10 Dec 2019

Image Source: German Auto Industry
Germany's main automobile industry body VDA expects global car sales to fall by 4.1% this year to 80.1 million, the steepest drop since the financial crisis, and warned of more job cuts in 2020 as a result. VDA president Mr Bernhard Mattes said "The competition is getting tougher, the headwinds are getting stronger. Capacity utilization has declined, limited-term employment contracts are not being renewed, and the instrument of short-time work is being employed once again," Mattes said. This meant that the number of permanent staff at car factories was likely to fall further.”

Mr Mattes said the association already expected a drop in employment this year, and this trend would worsen in 2020, though he gave no figures for the predicted layoffs.

He outlined 3 challenges that the German automotive industry is facing

First is the decline of the economic situation in the worldwide automotive industry, with effects on capacities, production, exports and employment

Second is the huge uncertainties concerning trade policies between the US and China and the US and Europe. The Brexit comes on top of this

Third is electromobility and digitalization. In both sectors, companies are making enormous investments in advance and have to shape the process of structural change at a time of declining volumes

He said “We are dealing with a fundamental structural transition with extremely high investments at a time of weakening market dynamics. At many companies, the tension is palpable.”

Source :

Posted By : Yogender Pancholi on Tue, 10 Dec 2019
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