How would Germany auto industry perform in 2009?
As per reports of most prominent trade groups, car sales in Germany auto industry in 2009 are going to be worst since 1990 due to ongoing global financial crisis. Consumers of auto industry in Germany have been affected by this economic phenomenon. Economic growth in Germany has come to a grinding halt. All these factors are supposed to lead to decrease in sales of cars in German auto industry.
Possible car registrations in 2009
Germany Association of Automotive Industry has forecast that in 2009 amount of new car registrations would be in region of 2.9 million. It is significantly lesser than 2008 when 3.1 million car registrations had been projected.
Causes of downslide
Matthias Wismann, who is president of Germany Association of Automotive Industry has said that there has been a decrease in projections as pace of sales in the Germany automotive industry has gone down to a significant extent. Lesser cars are being sold and all these factors have contrived to bring down growth prospects of Germany auto industry.
Employment scenario
As per available reports, employment situation in automobile industry of Germany is pretty critical of late. In September 2008 1,850 core personnel were released by various automobile establishments. 8,000 to 10,000 part time employees have been let go during that same period as well.
A number of car makers in Germany have been trying hard to not sack their employees but adopt certain measures. These measures would help them achieve a situation, whereby their employees and productivity are not compromised. They are doing away with overtime besides bringing down amount of working hours.
Ferdinand Dudenhoffer, who is a major auto industry analyst of Germany, has noted that there is a possibility that in 2009 100,000 people could lose their jobs in auto industry of Germany. Automobile establishments in Germany would be sacking 80,000 temporary workers in addition to 20,000 regular employees.
Effect of global financial crisis
Global financial crisis has had an adverse impact on Germany automobile makers and suppliers. A number of internationally well known automobile companies in Germany have been forced to bring down their production levels and this list includes BMW and Volkswagen. After third quarter of financial year 2008 sales of leading car manufacturers Porsche and Daimler AG have gone down as well. Demand for their cars has decreased too.