Germany’s car crisis ‘may sink economy’

A GROWING crisis among German car makers could sink the nation’s economy, experts have warned.

The £366bn automotive industry is facing claims its top players secretly agreed not to compete in innovative areas such as emissions technology. Analysts at Frankfurt survey firm Sentix said the row could seriously harm the mighty German manufacturing sector.

It came after a shock 1.1pc fall in output for June – the sector’s worst month so far this year.

Sentix said the German economy may have hit a high and growth expectations could now fall sharply.

It added: ‘It is becoming increasingly apparent that the economic momentum has passed its zenith. Expectations are crumbling.’

The firms rumoured to be facing a European Union cartel probe are Volkswagen, Daimler, BMW, Porsche and Audi.