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.
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.