cross-posted from: https://lemmy.zip/post/50548487
German industrial production fell back to 2005 levels in August as output in the country’s all-important car industry cratered by 18.5 per cent compared with the previous month
Overall, industrial production fell 4.3 per cent in August compared with the previous month, seasonally adjusted data showed on Wednesday. Economists had predicted a smaller drop of 1 per cent in a Reuters poll.
Sure, but they also suffer the consequences of their own focus on pushing out more and more SUV’s instead of focusing on EV. Volkswagen actually made the correct choice going fully for EV’s, but then backtracked under shareholder pressure. And the EU as a whole failed to protect local battery production and technology, allowing itself (although this also goes for the US, Japan and South-Korea) to become completely dependent on Chinese raw materials refinement and battery production and technology.
China on the other hand, not suffering from fair and free elections, had a much easier time keeping its eye on the ball and sticking with a coherent long term vision.
That being said, I do think it’s good for Germany to become less dependent on their car industry. They have a lot of industries screaming for highly qualified employees and the car industry has been vacuuming up a majority of those. These people becoming available for other industries will provide significant benefits as well.
Most of what you write I agree with, but the situation in China is absolutely not fine and dandy. (Although what they have achieved is impressive)
China has huge problems too, the competition is harsh in EU, but it’s way worse in China, the competition level among BEV makers is absolutely insane. You can buy a Xiaomi SU7 for less than € 30.000,- a close equivalent to an electric Porsche Taycan, and the cheapest Taycan cost € 155.000,- And the SU7 has more features and is faster.
It would be very strange if some of the Chinese manufacturers don’t go under. The government has tried to intervene to dampen the competition to make car makers and suppliers to the industry more profitable. But it seems to have had no effect.
As it is, car makers typically don’t pay suppliers for ½ a year! Most suppliers can’t do without the money for so long, so car manufacturers issue vouchers to them that can be traded. It’s a huge credit house of cards, and more likely than not, one side will fall.
When they are in the EU market, they are absolutely here hoping to make money on a less competitive market.
I’ve said this before, but china has a hundred year plan… america has no fucking clue what the plan is for the next 100 minutes
We will just have to wait and see which system works best. 😜
/s