Several years ago, the German government expressed its concerns about exporting German car-building jobs to China and the attendant political and economic upheaval that would entail. However, at that time, the German auto industry felt confident that it could continue to mainly produce and sell ICE vehicles in Germany while at the same time exploring the possibilities of electric vehicles for the expected “niche” market. We had the award-winning BMW i3 and the budget Volkswagen e-Up.
What is the economic future for economies dominated by the auto industry? In an article co-authored by myself and Dr Paul Wildman,“Is Toyota circling the drain and will it take Japan with it?” No one is suggesting that any German carmaker is circling the drain. However, a significant loss of jobs in the German auto industry will lead to political instability. German auto unions play a large part in the political process.
As VW sales slump in China, it appears that the Chinese population thinks that Chinese made EVs are better than German brand EVs, including Teslas.