Ifo's business sentiment indicator for the sector fell from -18.5 in July to -24.7 the following month, the economic institute said on Wednesday.
"Sentiment in the automotive industry is taking a nosedive," Ifo sector specialist Anita Woelfl said in a statement pointing to markedly pessimistic expectations for the coming six months.
The expectations indicator dropped from -29.5 points in July to -40.5 in August, according to Ifo's monthly survey.
"Companies in the German automotive industry are suffering from a lack of new orders, especially from abroad. This is now also being reflected in personnel planning," Woelfl said.
On Monday, Volkswagen said it would prematurely end a job security programme in place since 1994 and set the stage for plant closures in Germany.
The company - Europe's top car maker by revenue and long a symbol of Germany's industrial might - is holding talks between management and the workforce later on Wednesday.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
