German car giants, threatened by Chinese rival, employ 7% of total workforce and contribute about 5% of the annual tax take
Visitors look at BYD 's EV models at last year's IAA Mobility international motor show in Munich, Germany . Since then, the Chinese car brand has overtaken Tesla to become the world’s biggest-selling electric car brand. Photograph: Getty
“If you want to get big in Europe, you can’t bypass Germany,” Jan Grindemann, BYD dealer in Stuttgart, told Der Spiegel magazine.Compounding the coup, BYD also staged a daring raid against VW in its own backyard, stealing its “official e-mobility partner” sponsorship deal with Uefa for the European Championships.
It’s not an overstatement to call Germany’s auto industry the key to national identity and prosperity. The country’s car giants employ 7 per cent of the total workforce and contribute about 5 per cent of Germany’s annual tax take. All these liabilities will linger into next year and, to believe other analyses, it is no longer a cyclical issue. As all other G7 members left it in their economic dust in 2024, Germany appears to be undergoing a dangerous paradigm shift, and is in more danger than many in the country realise.
“Our companies were the victors of this era,” she told Der Spiegel magazine. “But at the moment when the old order collapses and protectionism divides the global markets, we are the ones who will suffer the most.” For his part, Mercedes boss Ola Källenius has promised more stick than carrot in the new year. From January 1st, all company executives, from department head up, are obliged to return to the office. He has also flagged what he sees as a worrying trend indicating that Germans may truly be the sick men and women of Europe.
Another challenge is the struggle of companies here to compete with foreign rivals due to what Siegfried Russwurm, Germany’s chief industrial lobbyist, has denounced as Germany’s “toxic” energy policy. While fired FDP minister for finance Christian Lindner defends it as a dam against reckless deficit spending, the political consensus is shifting towards a more flexible brake, allowing debt-financed borrowing for Germany’s creaking infrastructure and other sustainable investment projects.
In his view Germany is experiencing a systemic crisis that is being exacerbated by cyclical elements.
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