Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Fiat Chrysler and PSA complete merger to become Stellantis
      Dacia-Lada business unit will unleash brands' power, Renault execs say
      Russia's new-car sales fall 2% in December
      FCA-PSA merger adds uncertainty to Peugeot's return to U.S., brand chief says
    • Fiat Chrysler and PSA complete merger to become Stellantis
      Dacia-Lada business unit will unleash brands' power, Renault execs say
      BMW aims to double EV sales this year
      EX-VW CEO Winterkorn avoids market manipulation trial but faces tougher test
    • Ford, Audi, Daimler reduce German output on chip supply shortages
      Airline chief to head Swedish bearings maker SKF
      Nvidia CEO says software will soon define the car, drive profit
      LG Magna-MAIN_i.jpg
      At CES, Magna touts new deal with LG
    • Dacia-Lada business unit will unleash brands' power, Renault execs say
      Renault to follow Peugeot, VW in seeking higher transaction prices
      Renault to boost low-volume Alpine brand with 3 EVs
      view gallery
      8 photos
      Dacia Bigster
    • Mercedes badge_1.jpg
      Mercedes meets European CO2 target with late-year surge in EV sales
      EV-only future looks closer than ever in Europe
      VW to link bonuses to social targets
      New EU 'green-washing' rules will force automakers to be transparent
    • Russia's new-car sales fall 2% in December
      FCA-PSA merger adds uncertainty to Peugeot's return to U.S., brand chief says
      Benz plant in Beijing.jpg
      Mercedes, Audi, BMW post record China deliveries
      LUXESALES-MAIN_i.jpg
      BMW defends U.S. luxury crown
    • Airline chief to head Swedish bearings maker SKF
      Renault names former Google exec to run Alpine brand
      Bentley's top designer, Sielaff, to leave; may join Geely
      RTX326BL.jpg
      LeddarTech names former Opel CEO Carl-Peter Forster to board
    • Geneva Auto Show
    • Frankfurt Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Supplier Spotlight
    • Focus on Electrification
    • Latest Launches
    • Analyst's View
    • Segment Analysis
    • Europe By The Numbers
    • EV-only future looks closer than ever in Europe
      European car retailing poised for shake-up as 'agency' model gains support
      How Europe will become an EV battery powerhouse
      VW, Ford stumbles force rethink of how to best use social media
    • Nvidia CEO says software will soon define the car, drive profit
      Tavares: Keeping PSA, FCA merger on track an 'incredible' achievement
      Renault CEO outlines ambitious revival plan
      Why Rolls-Royce boss expects to be profitable despite COVID
    • Veoneer boss expects to reach key milestone this quarter
      How Faurecia aims to become a hydrogen leader
      How Yanfeng gave the car interior a brain
      FCA suppliers in Europe at risk from switch to PSA platform, experts say
    • Arrival Van.jpg
      How Arrival intends to disrupt the delivery van market
      Polestar 2's performance, convenience offset range anxiety
      Chinese EV maker Xpeng outlines Europe rollout plan
      Nio ET7-MAIN.jpg
      Nio debuts first electric sedan
    • BENTAYGAHYBRID-MAIN_i.jpg
      Bentley freshens Bentayga Hybrid
      BMW 4-Series Coupe breaks free from sedan sibling
      Hyundai counts on new Tucson to become its Europe top-seller
      Dacia turns to familiar playbook for all-new Sandero
    • Pandemic forces automakers to focus on brand, conserve cash
      Why prospects for dealer mergers have improved
      Dacia-level price discipline needed to end margin slump in Europe, expert says
      How infotainment systems are taking over the vehicle cockpit
    • Wagons hold market share, but costly EV shift looms
      Electrification gains speed in Europe's key compact segment
      Hybrids beat the market; sales expected to top 1 million in 2022
      Plug-in hybrids set for rapid rise but trouble looms
    • Russia's new-car sales fall 2% in December
      Europe sales by model, Nov. and 11 months: Audi A3, Jeep Compass rise; Toyota Yaris surprises
      Top 10 sellers by market, 11 months: Skoda a top 5-seller in 13 countries
      Russia's new-car sales rise for second straight month
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
    • Polestar 2's performance, convenience offset range anxiety
      Bosch, Continental battle to supply the brain of the connected car
      Why the ID5 is VW's true rival to the Tesla Model Y
      Volvo, Daimler CEOs praised for leading push to computerize cars
    • Understanding the impact of design on marketing, brand and user experience
      Ex-Aston Martin CEO Palmer calls on UK to intensify battery commitment
      Why Apple must target the $230B luxury car market
      Apple car: Who will build it? Magna Steyr possible candidate
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
    • view gallery
      8 photos
      Dacia Bigster
      view gallery
      8 photos
      Renault 5 concept
      view gallery
      15 photos
      Toyota Mirai 2021
      view gallery
      10 photos
      Fiat Tipo Cross
    • koenigsegg-gemera-front-quarter-passenger-01.jpg
      view gallery
      14 photos
      Koenigsegg Gemera
      view gallery
      21 photos
      Fiat New 500
      view gallery
      11 photos
      Aston Martin V12 Speedster
      view gallery
      13 photos
      Audi A3 Sportback 2020
    • At the Beijing show, sales rebound and EV boom mix with murky outlook
      3BEIJING-MAIN_i.jpg
      Beijing show to highlight competition for local EV makers
      Beijing auto show delayed due to coronavirus
      Maserati will unveil Ghibli hybrid at Beijing show
    • view gallery
      11 photos
      Mercedes-Benz Vision EQS
      view gallery
      11 photos
      Renault Captur
      view gallery
      5 photos
      Mercedes-Benz AMG GLB 53
      view gallery
      10 photos
      Mercedes-AMG GLE 53 Coupe
    • view gallery
      8 photos
      VinFast Lux SA2.0 SUV
      view gallery
      8 photos
      VinFast Lux A2.0 sedan
      view gallery
      7 photos
      Toyota Corolla station wagon
      view gallery
      9 photos
      Seat Tarraco
    • view gallery
      4 photos
      Nio ET Preview
      view gallery
      7 photos
      Infiniti Qs Inspiration concept
      view gallery
      5 photos
      BMW 3-series LWB
      view gallery
      9 photos
      Mini Clubman
  • Maps
    • E-Car & Component Map of Europe
    • Powertrain Map of Europe
    • Assembly Plant Map of Europe
  • Car Cutaways
  • EVENTS
    • ANE Congress Conversations
    • ANE Shift
    • ANE Rising Stars
    • ANE Eurostars
    • ANE Leading Women
    • Watch Again
      • July 9: EU green deal in the COVID-19 new normal
      • July 16: Assisted or Autonomous Driving
      • July 23: Challenges in Electrification
      • July 30: The Road Ahead for Europe
    • Meet the 2020 winners
    • Watch the 2020 Rising Stars awards again
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Commentary
September 19, 2019 05:19 AM

German industry faces an image crisis amid falling sales

Chris Bryant
Bloomberg
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Reuters

    Automakers faced protests at the Frankfurt auto show accusing them of not doing enough to end their reliance on diesel and gasoline engines.

    America's automakers hit rock bottom with the public when their executives went to Washington in 2008 to beg for a bailout -- in corporate jets.

    Now it's the German car industry's turn to suffer an image crisis and, as with General Motors and Chrysler a decade ago, it could not be happening at a less auspicious moment.

    Amid trade wars and plunging China sales, the number of cars rolling off Germany's production lines has dropped by 12 percent this year and exports by 14 percent.

    Sales in Europe's No. 1 market fell 0.8 percent in August. Overall European sales fell 9 percent in the same period.

    With demand expected to remain weak for a couple of years, the German supplier Continental is not ruling out cuts to working hours and jobs.

    It's a bad time to be having a public relations crisis too, but that is what is happening in the country that invented the internal combustion engine.

    This month's Frankfurt auto show was meant to give Germany's mighty auto industry a platform to show off its expensive plans to build more electric vehicles.

    Instead, many international automakers chose to stay away (some to save money) and Karl-Thomas Neumann, the ex-boss of Opel/Vauxhall, declared the event a "huge fail."

    Compounding the misery, Mercedes-Benz, BMW and Volkswagen Group were upstaged by climate protesters who accused them of not doing enough to end their addiction to diesel and gasoline engines.

    Things had already got off to an ugly start. On the eve of the show four pedestrians were struck and killed by an SUV in Berlin, prompting a fierce debate about the "social utility" of these gas-guzzling, tank-like cars.

    Featuring a picture of a Porsche SUV on its cover this week, Der Spiegel magazine declared a "new object of hate."

    Meanwhile, the organization that one might usually expect to defend the German car giants -- the VDA lobby group -- was preoccupied with the abrupt resignation of its president, Bernhard Mattes. This fueled speculation that the industry was unhappy about its loss of political influence and increasing stigmatization.

    The German car industry provides more than 800,000 jobs in the country and it accounts for a big chunk of its manufacturing production and exports. Past governments fought hard to protect their industry crown jewel from troublesome regulations. That is no longer always the case.

    First, the Volkswagen diesel-emissions scandal made it unwise for politicians to go easy on companies that put profits above public health. And second, Germans have become alarmed by climate change and the industry's role in that.

    The average emissions of new vehicles sold climbed for the second year in a row last year, in part because of SUV sales. That is one reason why Germany is set to miss its 2020 carbon pollution reduction targets. Passenger cars account for about 11 percent of its greenhouse gas emissions.

    Stringent European Union emission targets, and massive fines for non-compliance, have been put in place already.

    A German federal government led by the Greens (not unimaginable given the party's poll surge) would be tougher still. After the deadly accident in Berlin, there were calls to ban SUVs from cities.

    The average age of a new car buyer in Germany has climbed to 53, suggesting that the industry may be looking at a difficult future.

    Yet claims that Germans have fallen out of love with the automobile feel overblown. They still bought about 3.4 million new vehicles last year, pretty decent by historic standards. About 95 percent of them had a combustion engine. More than one-quarter were SUVs.

    Nor does the government have any desire to kill its golden goose.

    Earlier this year officials rejected attempts by campaigners to mandate a speed limit on the autobahn.

    With this contradiction between the public's anxiety about climate change and its fondness for big vehicles, it's not surprising that the government and automakers are struggling to keep everyone happy. Riding a bike and car-sharing have become a genuine alternative in cities such as Berlin.

    But for those who still feel they need a car, electric vehicles tend to be more expensive and their driving range can be limited (for now, at least). The climate package the German government is due to announce on Friday will doubtless try to address this by including more incentives for electric vehicles and infrastructure.

    As the industry wrestles with such epochal challenges, it helps that Germany's automakers have all recently appointed new bosses. They are far from united, however, on how aggressively to abandon the combustion engine.

    Volkswagen is going "all-in" on battery cars (it's targeting 40 percent of electric sales by 2030), while BMW is more cautious. The latter thinks hydrogen fuel-cells might have a future, though VW is not a fan.

    Yet even VW plans to use the profit from selling large SUVs such as its three-row "Atlas" to fund investments in green alternatives.

    At last week's show in Frankfurt, electric vehicles like the Porsche Taycan and Volkswagen ID3 sat alongside gas-guzzling vehicles like the BMW X6 and Mercedes AMG GLE Coupe.

    With the climate crisis intensifying, the industry's split personality is getting more incongruous and indefensible by the day.

    RECOMMENDED FOR YOU
    Fiat Chrysler and PSA complete merger to become Stellantis
    Recommended for You
    Fiat Chrysler and PSA complete merger to become Stellantis
    Fiat Chrysler and PSA complete merger to become Stellantis
    Dacia-Lada business unit will unleash brands' power, Renault execs say
    Dacia-Lada business unit will unleash brands' power, Renault execs say
    FCA-PSA merger adds uncertainty to Peugeot's return to U.S., brand chief says
    FCA-PSA merger adds uncertainty to Peugeot's return to U.S., brand chief says
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • 2020 Media Kit
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Geneva Auto Show
        • Frankfurt Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Supplier Spotlight
      • Focus on Electrification
      • Latest Launches
      • Analyst's View
      • Segment Analysis
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Maps
      • E-Car & Component Map of Europe
      • Powertrain Map of Europe
      • Assembly Plant Map of Europe
    • Car Cutaways
    • EVENTS
      • ANE Congress Conversations
        • Watch Again
          • July 9: EU green deal in the COVID-19 new normal
          • July 16: Assisted or Autonomous Driving
          • July 23: Challenges in Electrification
          • July 30: The Road Ahead for Europe
      • ANE Shift
      • ANE Rising Stars
        • Meet the 2020 winners
        • Watch the 2020 Rising Stars awards again
      • ANE Eurostars
      • ANE Leading Women
    • More
      • Publishing Partners
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us