The Journal.

Germany's Economy Is Broken. There's No Plan B.

164 snips
Feb 21, 2025
Tom Fairless, a WSJ reporter specializing in the German economy, breaks down the alarming downturn plaguing Germany, traditionally a manufacturing powerhouse. He discusses how the current economic model is faltering with no clear alternatives in sight ahead of elections. Fairless highlights the struggles of towns like Ingolstadt, heavily reliant on major industries, drawing parallels to Detroit's collapse. The conversation also delves into the political implications as voters grow increasingly anxious about unemployment and the need for substantial reforms.
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ANECDOTE

Ingolstadt's Dependence on Audi

  • Ingolstadt, Germany, relies heavily on Audi for its economy.
  • The city is essentially a "company town," with many businesses catering to Audi employees.
INSIGHT

Shifting Global Auto Market

  • Audi's success was built on exporting cars, especially to China.
  • However, China now produces and exports its own cars, becoming a competitor.
INSIGHT

High Energy Costs

  • High energy costs due to the war in Ukraine are impacting German manufacturers.
  • These increased costs make German cars less competitive globally.
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