E-car demand SLOFFT: Supplier in the crisis

E-car demand SLOFFT: Supplier in the crisis

The effects of e-car demand on the supply industry

The German automotive industry faces major challenges, especially with regard to the demand for electric vehicles (electric cars). This situation not only affects the large automobile manufacturers, but also has serious consequences for the suppliers.

a worrying trend for the suppliers

A current survey by the Horváth management consultancy has shown that the demand for components for electric vehicles drops significantly. Manufacturers decrease up to 50 percent fewer e-vehicle components than previously assumed. This situation makes it increasingly difficult for many suppliers in Germany to maintain their business.

consequences for employment

The weak demand situation hits the supply industry hard. In order to reduce financial pressure, around 60 percent of the suppliers surveyed intend to make modest job cancellations. This could lead to a significant decline in jobs in an industry that counted around 273,500 employees in 2023.

the economic challenges

Frank Göller, an automotive expert at Horváth, emphasizes that the economic conditions have deteriorated for many suppliers. The changeover to the production of modules and components for electric vehicles requires high investments. Many companies are now faced with greatly sunken sales and income.

The future of suppliers: mergers and takeover?

In the future,

In the future, mergers or takeovers within the supply industry could lead to the survival of the company. The pressure on the suppliers is growing, and many managers are forced to make strategic decisions.

conclusion: a critical location for a key industry

The automotive supply industry plays a crucial role in the German economy. The current doldrums in the e-car market not only have an immediate impact on the companies themselves, but could also change the entire industry sustainably. It remains to be seen how these challenges will affect the innovative strength and competitiveness of the German automotive industry.

- Nag