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German Brands Gloomy About Future

Poll measures their confidence at its lowest since Great Recession.

July 5, 2023
German Brands Gloomy About Future

Planned prices increases are expected to primarily affect premium and electric models.

IMAGE: Pexels/Pixabay

1 min to read


German automakers have a dim view of their future but are still raising vehicle prices, according to new poll results.

The brands’ business improved month-over-month in June, the poll by Munich-based ifo Institute found, but respondents’ expectations fell steeply.

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Ifo’s indicator rose nine points to 37.5 while expectations fell for the fifth month in a row, this time by 46.6 points to minus 56.9, their lowest point since the Great Recession, when they cratered to minus 67.8, ifo said in a press release on the survey results.

“Automakers are experiencing great uncertainty, comparable to the early days of the war in Ukraine or to when the risk of gas rationing in manufacturing shot up last fall,” says ifo Center for Industrial Organization and New Technologies Director Oliver Falck. 

The automakers, including BMW and Mercedes, are pessimistic because of rivals Tesla and ascendant Chinese automakers, inflation and Europe’s slowed economy.

Falck predicts that their plans to raise prices again will primarily affect their premium and electric models.

DIG DEEPER: Mercedes Expects Lower Earnings This Year

Originally posted on Auto Dealer Today

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