The Financial Tsunami Ravaged Germany'S Textile And Other Major Industries.

The financial tsunami of November 18th, which was launched in September this year, is now spreading to other major industries after the impact of the financial tsunami in Germany. The automobile, steel and machine manufacturing industries in Germany are affected by different degrees, and the future of the enterprises is becoming dim.

The car industry is Germany's largest industrial sector, and 1 of Germany's 7 jobs are linked to the industry.

Affected by the financial crisis, the demand for automobiles in the US and Europe has declined sharply in recent months, and the main German auto makers are constantly sending news of a decline in production and profits.

According to the prediction of relevant agencies, German auto sales will fall to the lowest level since the unification of Germany in 1990 this year.

"The main market for German auto sales, the two largest markets in Europe and the United States, has been in decline for a short time, and I have never experienced it," said chief executive of the Daimler automobile company.

Volkswagen also predicted that the demand for cars in the US as the world's largest auto market will shrink at the level of early 80s, and it will only recover in 2010.

Diez, director of the German automotive industry research institute, believes that 2009 is a crucial year for the world's automobile industry.

Many auto factories will fall into losses. If there is no government bailout, some famous automobile factories will also be closed down due to lack of funds.

The German steel industry has been dragged down by the downturn in the automotive industry.

To maintain iron and steel prices, Germany's largest two steel makers, Steel Corp, and Steel Corp, both of them, have cut production.

The German iron and Steel Industry Association predicts that Germany's steel output will be reduced by 2% this year, and the global steel output will also decrease by about 2% next year. The German steel industry will not improve until 2010.

The German machinery and Equipment Manufacturing Association recently predicted that as the second largest industry after Germany, the development of machine building industry will be stagnant in 2009.

However, despite the impact of the financial crisis, the industry will still grow by 5% this year, mainly due to the strong competitiveness of the medium-sized enterprises in the export market.

In the wake of the financial crisis, orders for textile, construction and printing machinery industry in Germany have been reduced, and businesses are beginning to develop conservation plans.

Heidelberg printing machinery company announced the layoff plan, and the engine manufacturer Deutsch also reduced the number of temporary employees.

Since the subprime mortgage crisis began in July last year and directly related to real estate subprime mortgage loan, the German construction industry felt the crisis earlier.

However, the impact of this crisis on enterprises is different: large enterprises such as Ho titif provide services to public utilities, because orders are stable, and are less affected by the crisis. However, orders for construction materials manufacturing enterprises have dropped significantly, such as cement and brick and mortar enterprises have become more cautious when investing.

The small and medium enterprises in this industry are also pessimistic about the future development prospects.

The prospect of German business enterprises is also not optimistic.

A Cologne enterprise consulting firm's latest survey shows that only 23% of retail businesses are optimistic about the medium-term business performance, while 44% of the companies say their performance will stagnate.

Retailers surveyed by 1/3 fear that sales will decrease in the next few months.

Owing to the provision of primary products to the market, the German industry is greatly influenced by changes in supply and demand in the global market.

Rainer, chairman of the German Association of chemical industries, recently acknowledged that the slowing global economy has affected German industrialization, especially the German enterprises related to the US automobile industry, such as the production of plastic and paint enterprises.

However, professional chemical enterprises such as pharmaceuticals, cosmetics and other enterprises have not been normal until now.