In March, the business expectations of German car manufacturers and their suppliers collapsed more than ever before because of the Ukraine war.
The corresponding barometer for the entire industry fell to minus 43.1 points after plus 14.4 in February, as the Munich Ifo Institute announced on Tuesday in its monthly company survey.
The Russian attack on Ukraine has increased oil and gas prices.
"This raises fears in the industry that sales of new cars could fall," says Oliver Falck, head of the Ifo Center for Industrial Economics and New Technologies.
"At the same time, energy costs are also increasing in car production and along the supply chain."
The car manufacturers also assessed their current business situation as significantly worse than in February.
The indicator fell to minus 13.5 points from plus 28.3 points.
"The shortage of primary products continued to worsen," said Falck.
“Ukrainian truck drivers are absent because they now have to fight in their country.
That brings the logistics to a standstill.” Central components such as cable harnesses, which are manufactured in the Ukraine, were also missing.
Corporate price expectations reached an all-time high.
Sales in Russia are hardly considered
The industry is less worried about the fact that Russia has largely disappeared as a sales market in view of the Western sanctions against Moscow.
"The Russian sales market is only of minor importance for German car manufacturers," said Falck.
The order books remained well filled overall.
The demand indicator even rose to 37.5 points, after 17.5 in February.
"Suppliers will feel the raw materials crisis across the board," said the economist.
Expectations fell to minus 37.9 points from minus 6.2 in February.
Here the order books are thin and demand has fallen further.
Production expectations were also significantly reduced.
No new positions are to be created in the coming months.