Business Daily Can Germany's auto industry be revived?
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Feb 20, 2025 Germany's car industry is facing tough times, battling high costs and fierce competition from Chinese manufacturers. With elections looming, the conversation shifts to what politicians can do to revive this crucial sector. The emotional impact on workers amid wage cuts and potential factory closures is also highlighted. Historical ties between towns like Wolfsburg and major manufacturers play a significant role, while the urgency to adapt to electric mobility and bureaucratic hurdles is emphasized for a successful future.
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Wolfsburg: A Car Town
- Volkswagen's Wolfsburg factory, originally built for the "people's car," now employs over 60,000 people.
- The town of Wolfsburg, with a population of 120,000, has grown around the factory, highlighting their interdependence.
German Car Sector Decline
- Germany's car sector, contributing 6% to the GDP, faces declining output since 2017.
- This decline impacts not only major automakers but also the broader German economy and well-paid, secure jobs.
Challenges for German Car Makers
- Reduced demand in Europe and the expensive transition to electric vehicles (EVs) are hurting the German car industry.
- Despite increased EV production, high prices and insufficient charging stations deter European consumers.