According to Siemens chief executive officer Joe Kaeser, interviewed by a local newspaper, the country’s heavily focused on exports car industry could take a hit next year as the strong sales in foreign markets are becoming a thing of the past.
Kaeser talked to the Passauer Neue Presse newspaper in an interview published over the weekend. “I would not be surprised if we see a darkening in the automobile sector in 2016 or 2017, due to weakening export dynamics,” the executive said. “At the moment it looks as if the reform course in China is stalling,” Kaeser added. Germany is the largest auto market in Europe, where the recovery has finally showed its face after years of slumping demand caused by the latest economical downfall. But the continent is troubled by the Greek issues and in certain regions the demand has not recovered as fast as in other countries. Then there’s China, the world’s largest auto market and in the recent past the best source of revenue for Germany’s main automakers. But the market is now bearing the brunt of the economical slowdown, corroborated with the recent stock market rout and the government’s decision to devalue their currency. The latter means repatriated earnings will be smaller for foreign automakers.
In the opinion of the leader of the supplier that delivers automation of production processes and testing-technology solutions for the auto sector, manufacturers now need to rekindle “innovation and productivity” as well as focus on newly developed opportunities, from sources such as digitalization.
Via Automotive News Europe