No car summit in Berlin can change the challenges in the Chinese market. For years, some foreign observers have been saying that the long-standing successful model of the German economy, characterized by exports to China, has broken down. This may be an exaggeration. But the golden age is undoubtedly over. The deterioration of the situation on the export markets would be easier to bear if the domestic market were in order. That’s not him. Demand in Europe is significantly lower than it was a few years ago, and local manufacturers are unable to offer smaller electric cars at competitive prices. These difficulties caused by excessive production costs are also of a structural nature. The idea that they could be combated through government purchase premiums or other market interventions would be naive. There is no other way: manufacturers and suppliers have to prepare for difficult times. This painful adjustment will have consequences for employees, especially for a volume manufacturer like Volkswagen. The works council’s idea that factory closures should be out of the question because something like this hasn’t happened for decades looks back to a time that has passed. Politics must not only create better framework conditions for the automotive industry. A guiding industrial policy would be harmful.
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