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5 Sep, 2023 11:06

German car industry issues energy-price warning  

The country is losing its status as a major production hub due to rising costs, Hildegard Muller says 
German car industry issues energy-price warning   

The future of Germany’s car production is at risk due to “toxic” energy prices, the president of the Association of the Automotive Industry, Hildegard Muller, has warned.   

Germany “is losing dramatically its international competitiveness” as the location for the automobile industry because of soaring energy costs, Muller stated in an interview with the head of Microsoft Germany, Marianne Janik, on Monday.   

Other countries are becoming more attractive for important industries such as battery or semiconductor manufacturing, which is a worrisome message for Germany amid an already unfavorable economic situation in the country, she said. 

According to Muller, soaring energy prices have become “toxic” for the country’s medium-sized suppliers. They warn that investment will no longer flow into Germany but instead will shift away to other EU countries or to the US.   

Aside from energy prices, Muller complained about overregulation of the car industry, delays with political decisions, and a lack of a legal framework for future reforms, in particular for technology products such as artificial intelligence.   

The latest survey by the German Chamber of Commerce and Industry showed that more than half of German companies have lost confidence in the country’s energy policy and believe that the transition toward renewables and away from Russian gas will harm their businesses.   

The research also showed that the number of companies considering leaving the country is on the rise. Almost one-third of industrial enterprises are planning to relocate production abroad or to reduce domestic output.

For more stories on economy & finance visit RT's business section

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