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German car exports falling

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Car exports from Germany have fallen in 2017, partly due to the weaker pound undermining British demand, the head of the Germany’s car industry federation said earlier this month.

“…lower demand in Britain caused by exchange rates” had contributed to a 2.0-percent fall in car exports, to 4.3 million vehicles, German Federation of the Automobile Industry (VDA) boss Matthias Wissmann said.

The pound sterling has recovered some of its initial fall against the dollar and the euro following the June 2016 Brexit referendum, but remains far short of its prior levels at around 1.13 euros or $1.34. Shortly before the referendum, the pound hovered around 1.30 euros and $1.45.

Britain is the biggest export market by unit sales and the second-biggest in financial terms for German car manufacturers, who operate relatively few factories in the United Kingdom. Another reason for exports’ slip this year was German manufacturing firms moving production of some models to factories outside Germany, Wissmann said.