German automotive industry faces deep crisis, Roland Berger warns
Consultancy Roland Berger warns that the German automotive sector faces an unprecedented crisis requiring drastic structural cuts.
The German automotive sector is confronting an unprecedented downturn with no immediate end in sight, according to analysis by management consultancy Roland Berger. Major carmakers and suppliers—including Volkswagen, BMW, Mercedes-Benz, and Bosch—are struggling with a deep structural crisis affecting the nation's largest industrial sector, which generates over €500 billion in annual turnover.
Advisors from Roland Berger warn that conditions will deteriorate further before improving, recommending that companies implement drastic cuts to restructure operations. Long regarded as a symbol of economic stability and a driver of German exports, the industry now faces severe headwinds that threaten its traditional business model.
Sources: Hospodářské noviny