German auto suppliers are facing a growing debt burden, according to a recent study. The study found that average interest expenses at Germany’s leading auto suppliers rose for a fourth consecutive year in 2025 to 102% of operating earnings.
Competition from China Intensifies
The study, conducted by Strategy&, PwC’s German consulting arm, also found that German companies had lower average equity ratios than their competitors, leaving them more exposed to financial stress. The cost gap between German and Chinese suppliers widened between 2019 and 2025, with Chinese competitors becoming more efficient and reducing both overhead and manufacturing costs as a share of revenue.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
