Summary
German manufacturers warn of a severe economic crisis driven by high energy costs, inflation, labor shortages, bureaucratic burdens, and declining demand in key markets like China.
The manufacturing sector, including firms like Volkswagen, Beckhoff Automation, and Ziehl-Abegg, faces stiff competition from China’s booming exports, especially in electric vehicles.
Political instability and inconsistent government policies have worsened the outlook, leading to job loss fears and restructuring.
German manufacturers like Volkswagen slept for decades without innovating.
See GM in 2009
Innovation takes time & money. So companies only spend it if they are forced, either through competition or regulation. VW, BMW, Mercedes did not think they had any competition. And thanks to the auto lobby and car friendly politicians, there was no pressure from regulators.
So, all that money, that could have gone to research went into the pockets of shareholders, like the klatten family for BMW, Qatar Holding or Blackrock for VW.
But I am sure they will find a way to saddle the tax payer with the losses, as is tradition.