- Germany’s car industry was once recognized around the world for its high-quality, innovative internal combustion engine cars. But things have changed since then.
- The industry is facing a range of issues, from regulation to macroeconomics, China and EVs.
- Issues in the automotive sector may also have spill over effects onto the wider German economy, which has been struggling for some time now.
These German carmakers can buy a monthly subscription to me giving a fuck.
Maybe selling parts of your car as subscriptions isn’t a good idea. I’ve only read that Mercedes and BMW are doing it.
You forgot Toyota
Isn’t Tesla doing it too?
Compete on quality, not price.
I don’t think the German car industry has ever competed solely on price. Outside Germany and some European countries, German brands are luxury items. In Germany, they oscillate between bread-and-butter and above-average.
The problem is value-for-money and market fit. German car makers (used to) have the best margins in the most expensive products, luxury items sold outside of Germany. Those cars aren’t built to last (like a Japanese car) nor are they fancy (like the first Tesla model).
German ICE cars are (and have always been) less reliable than Japenese cars. And more expensive. And come with very basic interior design / electronics unless you go for the luxury option.
AND NO EVs.
Who buys German cars? Show me one person who wants a VW.
- signed, a German engineer
Went from an Audi to Merc. I will likely go Japanese next but both cars were really nice I just dont think they are worth the price. I would go back to audi but they have moved to a subscription model for features so I will likely go to lexus or just a standard brand out of Japan. Definitely not American.
Yes, price is the point. Of course, a Mercedes is going to nicer than a Toyota, but is it worth its price tag?
So, to condense the article:
German car industry says:
We are having a tough time! We’re thinking of closing our German factories, and ending our “We don’t fire people” Guarantee!
Politicians, please save us by regulating our competitors and exempting us from sales tax on new technologies!
Why?
Because our primary source of money before, was selling in China (40% to 50% of earnings), and now Chinese EVs have taken over both China and the local market! So, with our
shittyexpensive EVs, we can’t compete, and, worst of all, China is buying less from us, so we are losing all that money!Opinion:
German car industry means:
We kept selling to the most vulnerable market and pocketing innovation money, and now we got out-innovated and that market is no longer vulnerable!
Please give us tax-money and regulate our competitors away, otherwise we will make a political stink, and throw workers on the street!
…with our expensive EVs…
They can’t compete on price primarily.
They wanted to keep the juicy margins of SUVs whilst being forced (whist bitching and moaning all the way) to transition to EV technology, so ended up pushing EV SUVs.
Their EVs are expensive mainly because of them targeting higher market segments instead of making an “EV for the people”, all the while that was exactly what most Chinese car-makers were aiming for.
Many of their union contracts had per-car metrics. SUVs count as one car but has higher margins.
Stop innovating and you die. Nothing to see here.
No, it’s stop innovating, build a monopoly, never change. The automotive industry (in Germany and the US) is just blue collar wall st. : too big to fail.
Stop talking “free markets” when the competition is taxed at 40%
The last innovation I heard about from BMW was subscription based heated seats.
I heard the steering wheel is also subscription
They tried making subscription turn signals but nobody bought them. /s
HAH! 😂
I don’t even think it’s a question of innovation, more just perceived reliability. A large part of the reason Mercedes and other German brands were considered high quality was that they were more reliable than a lot of other brands on the market, while being good to drive. That isn’t really the case anymore, and Toyota and Honda have that basically cornered that market to the point that it’s an outlier to fine one that isn’t reliable.
Mercedes and BMW were never known for reliability. They were known for combining luxury and a great driving experience, which couldn’t be had from any other car company, even Porsche (which was only about driving not luxury until recently) or Cadillac (only luxury and not driving until recently). German engineering has been famous for poor reliability since at least the early 80s.
That sounds about right. I’m 30+ and I’ve only ever known BMW and Mercedes as unreliable rich people cars. I’m from a lower income town where most people drive more sensible compact Japanese cars. Also American models, but those were always considered less desirable long term. These days you do see a lot of shitty large pick up trucks from the more “affluent families” sadly.
You have no understanding of any market outside your own little bubble, and looking at your past comments really enjoy speaking from that vast void of Dunning-Kruger. It’s really pathetic.
What are you going on about? What specifically about my post makes you think I have no understanding of the German car market? I mean, I’ve only owned multiple BMWs, a Mercedes, and an Audi. I’ve driven Porsches on the racetrack and VWs on the autobahn. My parents and friends’ parents had BMWs and Mercedes when I was a kid. I’m definitely no expert on the overall car market or even the German car market, but I’ve been a car enthusiast since I was a kid in the early 80s and have a decent understanding of the basics.
