Berlin, June 3 - The Ifo Institute reports a decline in sentiment within the German automotive industry for May 2025. The business climate index for the sector has edged down to -31.8 points, a decrease from -30.7 in April. This shift reflects ongoing uncertainty and challenges facing German car manufacturers.
Anita Woelfl, Ifo sector specialist, attributes this downturn to "the confusion surrounding the U.S. tariffs." Major German automakers, including Volkswagen, BMW, and Mercedes-Benz, are actively engaged in discussions with the U.S. administration. Their aim is to mitigate potential adverse effects from import tariffs and secure favorable trade conditions.
The Ifo survey indicates a slight improvement in companies' assessment of their current situation in May, remaining at a low of -35.3. However, business expectations have decreased, falling from -25.2 points in April to -28.3. These fluctuations highlight the delicate balance and ongoing adjustments within the German automotive sector as it navigates global trade dynamics.