Problems With German Cars || What if Germany stopped making cars?
- 10 months ago
Problems With German Cars || What if Germany stopped making cars?
Germany has been one of the best performing economies in the aftermath of the financial crisis but has stagnated since about 2018 despite a tight labor market. Being an industrial powerhouse, one big factor contributing to the slowdown is stagnating industrial production, and more specifically, the massive decline in car production over the last few years.
t is well-known that Germany is still an industrial powerhouse and that its economy is quite reliant on manufacturing. Germany has a higher employment share in manufacturing than the U.K. or the U.S., also thanks to its many hidden champions. However, the country’s car sector is stagnating even as it contributes significantly to Germany’s GDP and exports. Global car production peaked more than half a decade ago, and Germany’s domestic vehicle production has been falling for an entire decade.
can explain to some extent why German GDP growth has been completely stalling since about 2018 even as the German labor market has been quite tight. With the electric vehicle revolution and the ban on combustion engines in the decade to come, Germany’s car makers need to reinvent themselves, or face a continued decline that will be a drag on the domestic economy.
Germany has been one of the best performing economies in the aftermath of the financial crisis but has stagnated since about 2018 despite a tight labor market. Being an industrial powerhouse, one big factor contributing to the slowdown is stagnating industrial production, and more specifically, the massive decline in car production over the last few years.
t is well-known that Germany is still an industrial powerhouse and that its economy is quite reliant on manufacturing. Germany has a higher employment share in manufacturing than the U.K. or the U.S., also thanks to its many hidden champions. However, the country’s car sector is stagnating even as it contributes significantly to Germany’s GDP and exports. Global car production peaked more than half a decade ago, and Germany’s domestic vehicle production has been falling for an entire decade.
can explain to some extent why German GDP growth has been completely stalling since about 2018 even as the German labor market has been quite tight. With the electric vehicle revolution and the ban on combustion engines in the decade to come, Germany’s car makers need to reinvent themselves, or face a continued decline that will be a drag on the domestic economy.