German Auto Sentiment Hits New Low on Competitiveness Fears

Sentiment in Germany’s automotive industry reached a new low in January, as companies fret about their ability to compete, highlighting the challenges facing carmakers from BMW AG to Volkswagen AG and suppliers including Continental AG.

A business climate gauge by the Ifo institute slumped more than five points to minus 40.7 last month, the Ifo economic research institute said on Wednesday. Companies assessed their position on foreign markets as lower than ever before — both within and outside the European Union. They have also lost ground “significantly” on the German market, Ifo said.