German cars have the most to lose from a changing auto industry
Coddled by successive governments, the industry is dogged by dieselgate, lagging in electric vehicles and unsure about driverless cars
GERMAN carmakers have much in common with the self-confident roadhogs who favour their vehicles. The cars they produce, with sleek design, doors that close with a satisfying thunk and roomy interiors swagged with leather and technology, are the dominant force at the upper end of the car market worldwide. At home, too, they are the purring engine of the economy; carmaking is by far Germany’s biggest industrial sector.
But cars are changing. Electric power and autonomous vehicles will alter radically the way they are used (see special report). The difficulty in adapting threatens not only future revenues and profits at the big three—Daimler, BMW and Volkswagen (VW)–but also Germany’s status as a mean economic machine.
This article appeared in the Business section of the print edition under the headline "Last lap of luxury"
Business March 3rd 2018
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