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17 Comments
I feel like Europe has maintained competitiveness with regards to manufacturing due to cheap energy and resources from the post soviet Russia (though we did trade with the USSR throughout the cold war openly and to a greater degree than we do now post invasion). I struggle to think of solutions to reversing this crisis, and I also feel that once this war is resolved there will be huge pressure from industry to open up again to Russia.
When manufacturing industries close for good, that will be devastating across Europe. Unlike the US and China our main competitors Europe lacks the cheap energy or resources and is also heading in a more expensive greener direction (quite rightly) at a time when they are backing away from such commitments.
Imagine that. It’s almost like you need stable, sober, and rational policies & investment in order to create a good business environment. Surely politicians understand this. Either they don’t care or there is something influencing them toward irratic management.
Your main problem won’t be “how to pretend nothing happened and start buying cheap energy from ruzzia again” but it would be “how to defend whatever you can defend in Europe from ruzzia, north korea and iran combined army pushing into Poland and eventually occupying half of France.
Maybe, just maybe, Europe should have started making some serious attempt in EVs when the Model S come out in 2012 and won every award possible.
So they could make a supply chain and an Expertise and know how. But they laughed up until 2021.
Then now you (we) are fucked.
I think the Germans live above their means for far too long.
It is time to restructure their economy, cut pensions and benefits, reduce salaries and work harder.
And they should start paying their taxes, there is too much tax dodging in Germany, too many “cash only” shops
Sounds to me like:
“For the last twenty years we lobbied so hard for nothing to change, and now everyone else is to blame for the fact that the world still kept spinning…”
European manufacturers are losing competitiveness mainly because of inefficient supply chains compared to China but most of people don’t realise or admit it and all they do is complain and blame China for subsidies. You guys are stuck in the old days and too old to brace for changes. Lmao
I’ve heard the best way to fix a country with a economic issue is harsh austerity. Welcome to the PIIGGS.
What’s the matter? Do the Chinese not want to buy your cars after you changed them to suit that market while upsetting Europeans?
I love my 2015 BMW touring, nothing BMW makes now makes me want to switch to one of their newer cars. The only VWs I really have experience with is their vans and they are basic AF. Its the first time in I don’t know how long that I seen a blank steering wheel with no buttons at all on it. Man do a version of the crafter that way better.
European manufacturers seemed to cash in on European cars reputation by making their cars like everyone else’s.
As Justin Timberlake said it: cry me a river.
You cannot make stuff with expensive energy. It is just not possible.
I was assured multiple times in here that Germany is in a strong position and anything to the contrary was misinformation, hmmm.
German manufacturers should have had the incentive to innovate over the past decades – then this wouldn’t have happened to them.
When’s the German economy going to finally collapse? There’s been 100000000 articles talking about it but half the world still seems to want to migrate to the country. Weird…
Maybe VW, Audi, Mercedes and BMW should start producing tanks, humvee equivalents and other ATVs, and see how their stocks grow suddenly
Clinical execution of the decapitation of Europe by the US.
They fell for the exact same trap the Americans did: wanted higher profits per unit, even if it meant less sold units.
Well, when that happens and your sales fell even further you are porked and left with an overpriced car nobody wants.
Also, Chinese brands are hella vertically integrated (see BYD), share a ton of components between cars/models, and are aggressively going after volume.
They also (still) not do the stupid subscriptions for heated seats and all the other “upselling a subscription” BS all the MBA managers do.