- 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.
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