The German automotive industry, once a flagship, is struggling to make the leap to electric cars. Despite the challenges, there are still opportunities for Germany as an industrial hub, especially for innovative companies in niche markets.
However, there is a need for new structures and increased efficiency in order to compete internationally. The current situation is serious, and VW CEO Blume acknowledges the need for a hard restructuring, including possible plant closures and job cuts.
The government is being urged to introduce incentives for the purchase of electric cars and to reduce electricity prices to support the struggling auto industry. The state of Niedersachsen, which holds a significant stake in the VW Group, is also advocating for the reinstatement of purchase premiums for electric vehicles.
The challenges faced by VW are not unique, as other industries such as chemicals and steel are also experiencing job losses and relocations abroad. Despite these difficulties, the German economy still has many world-leading companies that can thrive by offering innovative technologies and high-quality products.
