Germany, the largest economy in the eurozone and the world’s fourth largest economy, grew just 0.1 percent in the third quarter, barely escaping recession, which is defined as two consecutive quarters of negative growth. Its GDP declined 0.2 percent in the second quarter.
Their economy is expected to only grow by 0.5 percent in 2019, the lowest since 2013.
As German auto sales, as with the world auto market, continue to slow, the ripple effect has hit auto parts manufacturers, who have reported disappointed earnings.
Infineon, supplying semiconductors, saw a drop from 14.6 percent to 8.7 percent in third quarter earnings. Its net income slipped 28 percent in the third quarter.
Continental, a parts supplier, had a net loss of close to €2 billion for the third quarter and margins dropped 2 percent so far in 2019. It warned of 20,000 layoffs.
Osram, a sensor manufacturer, noted an 8.6 percent decline in revenue.
IHS Markit noted that ten million fewer vehicles would be produced in 2019.
TRENDPOST: As noted in issues of Trends Journal over the past year, the auto industry is stalling across the globe.
In China, 90 million cars will be made in 2019, a 13 percent fall.
Nissan slashed his annual net profit by 35 percent and cut its revenue target by 6.2 percent from July.
Additionally, in July, Nissan announced a cut of 12,500 jobs globally, as well as a 10 percent cut in the number of models it produces after its profit fell this quarter by 95 percent.