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.
That’s not what it says in the article. The primary factor here is the booming growth of China’s auto sector and how it is outcompeting European manufacturers. Global auto sales in 2024 are on track to be the highest of all time. BYD now has over 90% market share in China and is expanding its global exports. I’m as anti-car as you can get but the trends are in the opposite direction.