Germany’s car industry crisis - this is what may fix it

Published On Feb 11, 2025, 7:33 PM

Germany's automotive industry, once a powerhouse of economic growth, is currently facing significant challenges including declining car production and sales, high labor costs, and competition from foreign electric vehicle manufacturers. The 'Big Three' German carmakers—Volkswagen, BMW, and Mercedes-Benz—have reported falling profits and are struggling to transition to electric vehicle production amidst rising costs and a weak domestic market. The industry needs substantial investments in technology and infrastructure to stay competitive, especially with the increasing influence of Chinese automakers. Upcoming government support will be crucial for recovery and innovation.