German industry faces declining competitiveness, especially in automotive sector

German industry competitiveness automotive sector Ifo survey structural crisis

A recent survey by the Ifo Institute reveals that German industry is facing significant competitive challenges. Approximately 25.4 percent of surveyed companies report a decline in competitiveness in markets outside the European Union, while 17 percent report a decline within the EU. Klaus Wohlrabe, a lead researcher at Ifo, characterizes these issues as structural rather than merely cyclical.

The automotive industry is particularly vulnerable, with 43 percent of companies in the sector reporting a weakened competitive position outside the EU. This sector is also experiencing significant labor shifts; the Bundesbank reports that the industry lost 42,300 jobs in the first half of 2026, a decline attributed to the transition toward electric mobility and increased competition from Chinese manufacturers.

Other sectors, including metal production, chemicals, and mechanical engineering, also report declining international competitiveness. High energy prices remain a critical burden for many German firms. In contrast, the beverage industry stands out as the only sector to have improved its competitive position both within and outside the EU.

Entities

DIHK · European Union · German Chamber of Commerce and Industry · German Industry and Commerce (DIHK) · German automotive industry · Germany · Ifo Institute · Klaus Wohlrabe · Leibniz Centre for European Economic Research

Claims

What the coverage asserts, and how many sources carry each claim.

[● 8 SOURCES] 25.4 percent of German industrial companies fear a loss of competitiveness in non-EU markets. www.it-boltwise.de · www.elektrowirtschaft.de · www.hna.de · www.mannheim24.de · www.op-online.de · +1 more
[● 8 SOURCES] 17 percent of surveyed companies report a decline in competitiveness within the European market. www.it-boltwise.de · www.elektrowirtschaft.de · www.hna.de · www.mannheim24.de · www.op-online.de · +1 more
[● 4 SOURCES] 43 percent of companies in the German automotive industry report a weakened competitive position outside the EU. www.it-boltwise.de · www.elektrowirtschaft.de · www.politika.rs
[● 3 SOURCES] The beverage industry is the only sector that improved its competitive position both inside and outside the EU. www.elektrowirtschaft.de · www.politika.rs
[● 3 SOURCES] The competitiveness problems facing German industry are structural in nature. www.elektrowirtschaft.de · www.politika.rs
[● 4 SOURCES] High energy prices are a major factor causing difficulties for German companies. www.hna.de · www.mannheim24.de · www.op-online.de
[● 3 SOURCES] The survey included 2,100 companies in July. www.hna.de · www.mannheim24.de · www.op-online.de
[● 7 SOURCES] Only 5.2 percent of companies reported an improvement in competitiveness outside the EU. www.it-boltwise.de · www.elektrowirtschaft.de · www.hna.de · www.mannheim24.de · www.op-online.de · +1 more
[● 4 SOURCES] 43 percent of automotive companies report a weakened position outside the EU. www.it-boltwise.de · www.elektrowirtschaft.de · www.politika.rs
[○ 1 SOURCE] The German automotive industry lost 42,300 jobs in the first half of the year. www.upday.com