- Germany’s car industry was once recognized around the world for its high-quality, innovative internal combustion engine cars. But things have changed since then.
- The industry is facing a range of issues, from regulation to macroeconomics, China and EVs.
- Issues in the automotive sector may also have spill over effects onto the wider German economy, which has been struggling for some time now.
So, to condense the article:
German car industry says:
We are having a tough time! We’re thinking of closing our German factories, and ending our “We don’t fire people” Guarantee!
Politicians, please save us by regulating our competitors and exempting us from sales tax on new technologies!
Why?
Because our primary source of money before, was selling in China (40% to 50% of earnings), and now Chinese EVs have taken over both China and the local market! So, with our
shittyexpensive EVs, we can’t compete, and, worst of all, China is buying less from us, so we are losing all that money!Opinion:
German car industry means:
We kept selling to the most vulnerable market and pocketing innovation money, and now we got out-innovated and that market is no longer vulnerable!
Please give us tax-money and regulate our competitors away, otherwise we will make a political stink, and throw workers on the street!
They can’t compete on price primarily.
They wanted to keep the juicy margins of SUVs whilst being forced (whist bitching and moaning all the way) to transition to EV technology, so ended up pushing EV SUVs.
Their EVs are expensive mainly because of them targeting higher market segments instead of making an “EV for the people”, all the while that was exactly what most Chinese car-makers were aiming for.
Many of their union contracts had per-car metrics. SUVs count as one car but has higher margins.
German cars never completed on price at all. They compete on quality. They can compete on quality again.
Sure, no objections there
Won’t somebody please think about the car manufacturers?!?