Navigating Recession and Structural Shifts in Automotive Production

The current recession is putting a strain on the automotive industry, which is already facing severe challenges due to structural change. Demand for cars is subdued, and with the electrification of drive systems, new, competitive rivals are emerging and challenge existing business models. Austria's suppliers are dependent on the decisions of international car manufacturers, which limits their room for maneuver. There is no clear transition path from the combustion engine to the electric motor. After the recession, it will be easier to distinguish between economic weaknesses and structural problems. Economic policy measures should promote competitive segments and cushion the negative effects on uncompetitive areas.