Germany’s carmakers are now producing 25% fewer cars than in 2018, with the downward trend even accelerating in 2024 with many more insolvencies. Jonas Eckhardt, a restructuring expert at management consultancy Falkensteg, told Bild (Germany’s largest-circulation tabloid): “After just eight months in 2024, we have already reached the insolvency figures for the entire previous year of 2023. I expect around 60 major insolvencies this year. Last year, there were 34 insolvencies in total.” This means that 2024 could be a catastrophic year for cars—and the auto sector is the centerpiece of German industry.
Suppliers have to finance the transformation to e-mobility from profits from the combustion engine business. They will lose these investment funds if the automotive slump continues. The insolvencies mentioned involve companies with a turnover of more than €10 million. This means that the economic heavyweights are going under.
