BERLIN, Feb 10 (Reuters) - Germany's standing as an automotive industrial hub risks being hollowed out as investments and jobs drift abroad, an industry association warned on Tuesday, calling on
German Automotive Sector Faces Crisis as Jobs and Investments Shift Abroad
Impact of Investment Migration on Germany's Automotive Sector
BERLIN, Feb 10 (Reuters) - Germany's standing as an automotive industrial hub risks being hollowed out as investments and jobs drift abroad, an industry association warned on Tuesday, calling on Berlin and Brussels to focus on measures that spur growth.
The VDA automotive association said 72% of companies surveyed plan to dial back their investments in Germany, either by moving them abroad (28%), postponing them (25%) or cancelling them completely (19%).
The survey, conducted regularly by the lobby among automotive suppliers and medium-sized manufacturers of trailers and buses, also showed widespread job cuts in Germany.
Job Cuts and Competitive Disadvantages
Last year, just under two thirds of the 124 companies surveyed cut jobs in the country, with 87% citing competitive disadvantages.
Criticism of EU Support Measures
Currently, 49% are cutting jobs in Germany, compared with just 7% cutting jobs abroad.
"Germany is experiencing a huge crisis as a business location," VDA President Hildegard Mueller said.
"The migration of investment and employment will not be without consequences for our country's prosperity and for its social and political stability," Mueller added.
She criticised an EU package of measures to support European carmakers while transitioning to electric cars and more environmentally friendly production.
"As an automotive nation, we absolutely cannot be satisfied with the current proposals," Mueller said, calling for market-driven incentives instead of regulatory obligations.
(Reporting by Rachel MoreEditing by Linda Pasquini)
