At a Crossroads. Crisis in the German Automotive Industry
At a Crossroads. Crisis in the German Automotive Industry

Author(s): Konrad Popławski
Subject(s): National Economy, Business Economy / Management, Environmental and Energy policy, Government/Political systems, Economic development, Financial Markets, Transport / Logistics
Published by: OSW Ośrodek Studiów Wschodnich im. Marka Karpia
Keywords: Automotive industry; economic growth; Volatility in global trade; Clean diesel; US-China custom war; NAFTA reform;
Summary/Abstract: The automotive industry was the driving force of Germany’s economic growth during the past two decades. In 1999–2017, German firms became the leading manufacturers owing to foreign expansion, and their share in the global market grew from 15.1% to 18.5%. Car manufacturers and their subcontractors employ 1.8 million people. This is one of Germany’s most profitable sectors of industry (80% of premium cars sold worldwide are made in factories belonging to German manufacturers) and it generates a significant share of the demand for the products and services of other vital sectors of the country’s economy, such as the electromechanical, chemical and logistics sectors. This concerns above all the giant automotive cluster in southern Germany (Bavaria and Baden‑Württemberg), where orders from car manufacturers are sometimes the only source of income for many firms.

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