Part 2/5:
The winding down of ICE engines and the refurbishment of factories is now starting to play out, and it's not looking good for the legacy automakers. Their suppliers are facing a "double blow" - as the ICE market shrinks, and the automakers struggle with their EV transition, the ripple effect through the supply chain could be devastating.
A recent survey by the German Association of the Automotive Industry (VDA) reveals a concerning trend:
37% of companies are planning to move investment abroad, primarily to other EU countries, Asia, and North America.
85% of companies are reporting a significant burden from overwhelming bureaucracy.
71% are affected by rising energy costs.
45% of companies are currently reducing their workforce, despite a skills shortage.
Only 1% of companies plan to increase investment in Germany, while 13% intend to cancel investment entirely.
The Desperate Attempts to Cut Costs
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