FACTBOX - How car slump will hurt German industry
FRANKFURT (Reuters) - The impact of a downturn in the automotive industry is spreading in Germany, prompting the world's largest chemicals maker BASF to issue a profit warning, and others could follow suit, industry experts said.
The German car industry, which features the world's biggest premium brand automaker BMW, Europe's largest car maker Volkswagen, sports car maker Porsche and Daimler, provides one in eight jobs, the German automotive industry association VDA said.
More companies could lower their guidance as a result of the downturn, Juergen Thumann, head of the BDI industry association, said on Thursday.
The following is a list of businesses that depend on the car industry:
ELECTRONICS
A third of German electronics makers are dependent on the auto industry. "All companies are more or less affected the same way," said a spokesperson for the German electrical and electronics industry association ZVEI. The association gave a dire outlook for the next six months, but said it expects to see a recovery in the second half of next year. Sales in the German electronics industry, which employs 830,000 staff, are expects to ease this year and next, ZVEI said.
German electronics parts manufacturer Epcos said earlier this month it would cut staff as a result of weaker car sales, for which it provides electronic components.
TRANSPORT
One out of ten trucks drives on behalf of the auto industry. "We expect to see about 5,000 bankruptcies and about 50,000 job cuts next year due to lower transport volumes, higher diesel prices, and a toll increase," said Martin Bulheller of the commercial transport association. There are about 55,000 transport companies in Germany, employing 600,000 staff. Continued...
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