It is not clear how the situation of German automobile manufacturers will work out given the ongoing conflict in Ukraine, the ifo Institute said on Thursday.
In February, the ifo indicator for the auto industry boosted to plus 18.3 points, up from plus 7.4 in January.
“Our recent data doesn’t yet reflect the most recent escalation in Ukraine,” said Oliver Falck, director of the ifo center for industrial organization and new technologies.
Falck noted that the survey was carried out before the Russia-Ukraine conflict.
“BMW and VW plants are at a standstill because there is now a shortage of wiring harnesses,” he added.
German automakers have reported a shortage of intermediate products. The ongoing situation in Ukraine had “greatly exacerbated this shortage” and manufacturers’ order books were still full but cannot be processed, the ifo Institute added.
On Wednesday, the Porsche suspended production at its Leipzig plant until the end of next week for now due to supply issues. It will continue its production at Stuttgart-Zuffenhausen this week, according to the automaker.