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    Home»Industry News»Engineering»Production decline in Germany
    Engineering

    Production decline in Germany

    By Kloepfel7. March 2019Updated:2. April 20192 Mins Read
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    Automotive industry faced with numerous challenges

    The year 2019 does not look too rosy for the automotive industry. Forecasts predict a decline in production of 5 percent to 4.8 million vehicles in the German plants. According to industry expert Ferdinand Dudenhöffer, profit warnings, production cuts and staff reductions are highly likely.

    Industry struggles with problems

    The main problems facing the industry are still the conversion to WLTP exhaust gas measurement values, the diesel crisis and driving bans. Other problems include the weakening Chinese automotive market and the trade dispute between the USA and China and the Brexit. In addition, the new CO2 regulations for the year 2030 supposedly have significantly increased the pressure on the Federal Republic to produce climate-neutral mobility. This is also reflected at the Geneva Motor Show, where numerous electric models and studies can be seen.

    US business also affected

    German manufacturers are also slowed down in US business. In February, Volkswagen and Mercedes-Benz both reported significant declines in unit sales. It seems that the auto boom in the USA is over. Daimler sold just 21,660 Mercedes-Benz brand cars – around 12.5 percent less than at the same time last year. Sales have fallen by 11.8 percent since the beginning of the year. Only Porsche, the sports car manufacturer belonging to the VW group, had a good year. The company sold 4826 new cars – an increase of 10.1 percent. BMW was able to keep its US sales stable and sold 23,558 new cars in February. Toyota and Nissan suffered declines of 5 and 12 percent, respectively.

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