EU Car Industry Faces Severe Downturn

The EU automotive industry is experiencing its worst phase since the Covid-19 pandemic, with a sharp decrease in car sales by 200,000 vehicles in the first eight months of 2024 compared to last year. Expert Ferdinand Dudenhoeffer notes a decline in electric car sales by 8.3% and warns of worsening conditions. Major manufacturers like Volkswagen are considering significant measures such as plant closures in response to ongoing economic challenges.

The EU automotive sector is experiencing its toughest period since the Covid-19 pandemic, with car sales dropping by 200,000 vehicles in the first eight months of 2024 compared to the previous year.

This trend is expected to worsen, as highlighted by industry expert Ferdinand Dudenhoeffer, founder of the Center for Automotive Research.

Sales of electric cars have declined by 8.3%, totaling 140,000 fewer units sold by August.

Major markets like Germany and Italy are already affected.

To mitigate losses, manufacturers are increasing vehicle prices, with a 10% rise reported for the most popular gasoline models.

Volkswagen, facing significant challenges, is contemplating plant closures or layoffs in Germany and abandoning its employment security program set for 2029.

Germany's automotive sector downturn has contributed to the economy's contraction following a recession in late 2023, signaling potential further economic struggles ahead.