Atreus Study: Automotive Decision-Makers Doubt Germany as a Location

The assessment of Germany as an economic location by top decision-makers in the German economy is becoming increasingly critical. A recent study by the Munich management consultancy Atreus concludes that a large majority of study participants from the automotive sector have doubts that politics is setting the right course for the industry. According to a press release dated August 28, the respondents see an urgent need for action, particularly in ensuring acceptable location costs.

As part of the study, executives from various industries, including CEOs, board members, supervisory board members, and interim managers, were surveyed. According to Atreus, the results are intended to represent assessments of the current situation as well as the strategies of the industries to remain competitive in an increasingly challenging global environment.

High Need for Action Regarding Location Costs

The survey, according to the study's authors, highlights that a large proportion of decision-makers in the automotive sector are skeptical about the political direction in Germany. More than 84 percent of those surveyed expressed concerns about whether the current policies are providing the necessary impulses for the industry. Particularly noteworthy is the high need for action in securing acceptable location costs, according to Atreus: Here, 76 percent of respondents see an urgent need to act.

More than half of the study participants from the automotive sector also mention the reduction of dependencies in the supply chain (55 percent) and the availability of skilled workers/new talent (51 percent) as conditions to re-establish Germany among the leading economic locations. Additionally, one in three respondents (35 percent) now sees a need for action in the development of functional software. According to the study, the sector currently considers the establishment of battery development and assembly plants to be even less important. Only 14 percent see priorities in this area.

Divestments domestically, investments abroad

According to the study, a quarter of the surveyed companies across industries plan to reduce investments and capacities in Germany over the next two years. However, more than 50 percent of the companies indicate that they plan to invest abroad in the same period – with the focus primarily on investments within the EU (62 percent), followed by the USA (38 percent).