German automotive suppliers are losing confidence in the sector, with nearly a third expecting the situation to deteriorate over the next year, according to a survey by the VDA industry association.

Investment and Hiring Decline

The survey of 116 automotive suppliers found that around two-thirds of companies are postponing, moving abroad, or canceling investments planned for Germany. Additionally, over half of the companies are cutting jobs in Germany, with only 3% hiring, the lowest rate since the VDA began collecting comparable data in June 2024.

The Middle East conflict has further driven up costs for the industry, with 46% of surveyed auto suppliers saying they are already feeling the effects through higher prices for fuel, energy, and components in their supply chains.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.