Germany was the great European automobile power. Now, more and more manufacturers are clear that it is the place to avoid

“Germany is the place where the car was invented.” This clear and forceful are shown in the Verbandes Der Automobilindustrie (VDA)the German automobile industry association. An organization that estimated that in 2023 they worked in this sector 779,700 employees throughout the country.

To get an idea of ​​the size of the automobile industry in Germany, in 2023 they manufactured 4.1 million passenger vehicles and almost 200,000 commercial vehicles. In Spain, the second largest vehicle producer in Europe, we manufactured half a million commercial vehicles but we stayed at 1.9 million passenger cars, according to data collected by Expansion.

In fact, Germany is also the first country in Europe and the second largest producer in the world of electric cars. In 2023 they manufactured 1.27 cars moved by this technology. It would be expected, therefore, that with this experience it would attract more and more interest of new companies that intend to settle in Europe.

Nothing is further from reality.

A gigantic problem

However, Germany faces a huge restructuring problem in the automobile industry. Their companies are in a process of conversion to the electric vehicle that points to thousands of layoffs but, in addition, the new companies seem clear that Germany is already the place where not to mount their factories.

The last to position has been controversial. Asked about a possible polestar factory in the country, Michael Lohsccheller, general director of Polestar, responded to the newspaper Welt that “Germany It is not precisely the cheapest place For car production. Everyone knows what the general conditions are at the moment. “

With that last sentence, Lohscheller referred to the loss of German competitiveness in the automobile industry. Stefan Bratzel del Center of Automotive Management (CAM) I pointed to DW This same month of January that the country suffered with “high labor costs, including medical care expenses and extensive holidays” of its workers.

To that same medium, Dirk Dohse, of the Kiel Institute for the World Economy (IFW) made it clear that German engineers were still among the best in the world but that the lack of flexibility prevented them from attract new talentsespecially from Asia.

The country has been in a Institutional and economic internal crisis which is being deeper in the automobile industry. This loss of competitiveness has led manufacturers to warn that There are 190,000 jobs at stake If the industry does not find a solution.

An output that looks more and more complicated if you consider that its manufacturers are drawing much more exports performance to China of electric cars than of combustion vehicles. This is a problem because the latter can get much higher per yield per vehicle sold than to electricity but also have a much lower competition than in the electric car market where the customer is turning to the local product.

With the pressures of European policies to hug the electric car, the industry has undertaken a conversion in its factories. However, until 2024 technology Keep growing at a paid in EuropOh In China they see the European car as a outdated product. The latter is especially important in a country that houses a huge labor force of Volkswagen, Mercedes or BMW, whose world sales volumes They are especially sensitive to Chinese purchases.

With bad results, Volkswagen has tried to fire tens of thousands of employees In Germany but, above all, the country sees How are production of vehicles or batteries to places like Spain, with lower labor and energy costs. A good example is the plant of Volkswagen in Sagunto to nurture Ford and Martorell.

But, in addition, Germany is not attracting new investments. Northvolt’s project in Germany did not go from the theory while Spain has received Catl’s support, Byd has settled in Hungary and Leapmotor already produces cars in Poland and, It is rumored, that in Spain. Besides, Morocco and Türkiye They press to show themselves as especially attractive countries to produce cars as cheap as possible.

Photo | Volkswagen

In Xataka | Germany demonstrates the dependence on the aid that the electric car has: 100,000 vehicles are taking dust