German car production drops to 23-year low on weak exports

German car production fell to its lowest level in almost a quarter of a century as Europe’s biggest economy suffers from the fallout of a global trade war.

Automakers including Volkswagen Group, BMW and Daimler produced 4.66 million vehicles in German factories last year, the lowest output since 1996.

The country’s VDA car lobby, which published the figures on Monday, said the 9 percent decrease was a result of falling demand from international markets.

The industry is set for more tough times this year. The VDA predicted global car deliveries will drop to 78.9 million vehicles from 80.1 million in 2019.