To see Germany’s future, look at its cars
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- Опубликовано: 5 май 2024
- As the election approaches, Germany's carmakers will face the same challenges as its new leaders: a need to innovate, tackle climate change and reassess its trade relationship with China. How this world-renowned motor industry navigates the road ahead could tell a lot about Germany’s future.
00:00 - Germany faces numerous challenges
00:49 - Can Germany’s cars reveal its future? (or whatever the title is)
02:13 - Is Germany too reliant on trade with China?
03:46 - Germany's reluctance to digitalise
05:09 - The race to go electric
06:41 - The future of electric cars
08:17 - What’s in store for Germany’s new leader?
Read our special report about Germany after Angela Merkel: econ.st/3Cuw3Pj
Find all of our analysis of Germany’s upcoming election: econ.st/3hQ0Zl9
View all our Europe section for all our coverage: econ.st/2ZgMqkb
The Economist Explains: How do Germany’s elections work? econ.st/3hS6aB3
German voters face a bewildering array of possible coalitions: econ.st/3nS5dwq
The warring parties’ plans for Germany’s economy are full of holes: econ.st/3Ewl7Tf
Why Climate change will feature heavily in Germany’s election: econ.st/3hM3Knu
Why German cars have the most to lose from a changing auto industry: econ.st/3EDZnF4
How new means of getting from A to B are disrupting carmaking: econ.st/3ClVz9o
Who will rule the Teslaverse? econ.st/3hS5mMx
Read about the new 800V electric cars that will recharge in half the time: econ.st/3lAivuM
What the million-mile battery means for electric cars: econ.st/3nPV5nP
Old electric cars are a raw material of the future: econ.st/3lG23sP
Read about Volkswagen’s plans for electric cars: econ.st/3lEmkPK
Listen to “The Economist Asks” podcast with Herbert Diess, chief executive of Volkswagen, about electric cars: econ.st/3CtU1dn
As a purchaser of numerous German cars over the past 50 years the biggest thing I have noticed is the decline in quality and reliability to the point my last purchase was Japanese.
The government getting involved is the prime reason this happened. Along with the "diesel gate" hoax scapegoating Germany yet again. Climate hysteria is a manufactured crisis to impose more taxes and control on the people of the Earth. It is utter non-sense.
Exactly....and notice the number of thumbs-up responses here..... BTW....me too, I see the same.
May be they didn’t it in propice to sell more car parts.
same
Exactly thats why i still drive 2004 audi. I just did not find more reliable car.
I once read an article in The Economist which proclaimed: "Germany is like a car that just went over a cliff at 100 mph - soon it will lose altitude"
That was in 1986!
The Economist is a British publication!
"Germany the sick man of Europe." that was in 2000
@@j.f.7509 I, as a german exchange student in Canada, read it in the school library in 1986. That headline has stuck in my head ever since.
However, I have no reference.
It was an article on how german automanufacturers would be wiped out by the japanese.
And actually it did look that way until 1990. Then Europe raised tariffs on foreign cars and also China began to open up (especially to VW).
" Germany stalls the Euro falls" in 1999
@@AKAHEIZER Germany *was* the sick man of Europe at the time. That was changed by the Hartz reforms under Schroeder... and those reforms are also why he lost the subsequent election.
Working for a German company I can tell you when it comes to digitalisation they are right. Germans don’t spend a penny unless it hits the fan and they have no choice anymore. No such thing as being proactive
I translate: this fits my personal experience. Hence, it surely is a general principle and intrinsic truth.
Let’s see how digitization keeps homes warm and people fed this winter. Germany has lied down with the WEF globalists and will pay the price.
@@RagingGoblin well actually it is u wannabe smartA
@@RagingGoblin a wiseman one said you can have your own truths but you can't have your own facts.
@@georgeschmall9254 True enough.
The automotive industry is essential not only for the Germans, but also for Europe overall. I’m italian and the amount of small/medium sized italian companies who produce components for the german automotive sector is enough to cause a real social economic issue if they had to fail.
It’s in part what allows Italy to stay relevant in the eyes of the Germans, as if these companies had to go bankrupt, it would be a real headache to substitute their components in the short term for the German automotive producers.
absolutely same in Czech republic / Slovakia
We wonder why Russia , USA , UK (winners of world wars ) couldn't become top exporters of automobiles worldwide.
On the contrary their world war enemies Germany and Japan are the top exporters .
Japan and Germany lost the war,
but eventually they won the global car market.
A peaceful revenge !
dont you think we can maybe at some point move away from this wasteful industry
The eu was designed by such a way to avoid war. The original design was by the nazis, then forced upon them by the us. Now every german export drive the whole eu. Lack of cheap energy doomed the whole eu unless an alternative source is found
internationalist want europe to fail. ww2 who won???
If Germany’s industry is in trouble, imagine in what state is in the rest of Europe that depends on Germany’s industry!
That is what actually going to happen
Simplification. Proszę to napisać Proszę to napisać Proszę to napisać
@@lukasstichnoth3739 mistake.
They overcome two world wars after much bigger issues than they face now, why would they fall now?
Do never understimate the work ethic and intelligence of Germans.
@@njsfer Work ethics means nothing, against greed. While German know how is planted in China, especially the auto industry, the Chinese will surpasse any German made cars. Then what will the German workers do? Nothing, live off state handouts, and misery.
Never ask an Economist to predict the future. The past is littered with their empty promises.
Yes, the USA has Alan Greenspan. Did he put us on a bad trajectory or what?!
That is so true
Same with climatologists
The magazine The Economist is not filled with economists.
wise man
I have been living in Germany since 2015…Germany doesn’t like doing flashy things or showing off like Americans or British people…They work smart, hard and in silence…They know their stuff…For dead sure they will overcome theses hurdles as they have been doing for the last decades…!
The days of top quality German cars are long gone. And without cheap Russian gas there is going to be no German car industry left anyway.
Germany's strength lies in the "small" companies and their innovation.
Once, America had this,......Once
Only 1-2 largest companies called Big Tech can survive globally these days. The time of mechanics and small companies is gone into history books, forever.
@@aabb-zz9uw nope
big corp in general are going down, they are unsustainable, unregulated (they audit themselves = are above the law) with their roots in war, big forestry, big mining, big weaponry, big chema, big aggra, big pharma, big oil etc etc etc the future is small, local, building resilience into the lives of our kids, grandkids, each generation is smarter than the previous, we are on our way to enlightenment, holistic [whole]
@@mercy2409 drawing what you wish for I see..
Measuring Germans economic performance based on how many large companies they have is like measuring a marathon runners performance based on how many sprints they've won.
Germanys strength is the Mittlestand, medium sized companies that are leaders in their niche markets.
I agree that Germany is behind in terms of digitalization. I mean there is software developed in Germany, it just tends to be less flashy, more boring stuff. Things like machine control software, communication, information and planning tools for businesses, database software, security software, etc.
I think the silicon valley approach of moving fast by breaking things often and early is not something that fits well with the German culture.
@Der Traubengott Germany as a whole is very much behind with digitalization. Everything in Germany still needs a paper trail, you can't do anything digitally with public authorities, the digital infrastructure is a joke compared to other developed countries, schools mostly still use only chalk boards, books, and overhead projectors. I mean we saw how digitally capable Germany is when we needed to switch to home schooling and home office, it was a mess.
Bingo! German culture… and it is been harder for the population/politicians to accept that.
@Der Traubengott Its beyond parody that you think the japanese have gone as far as german in terms of digitalization. The Japanese couldn't even get rid of fax machine. the japan government tried to phase fax machines out and cause huge backlash and had to abandon the plan.
@Der Traubengott we are far behind in terms of digitalization there might be areas where its better but as a while we at least 5 years behind
@@TackerTacker u are just talking about the authtities but the biggest Part of Germany is the Mittelstand and Most of them are Perfect organized and informed about digital skills
This not a report, this is a masterpiece of contemporary journalism.
Thank you for spending the time to create and share this content 🙏🏾
The Economist is a joke, they think that the entire world runs on gimmicky social media companies...
Manufacturing and engineering are still the foundation of modern life, Germany will be fine.
@A L
they compare market cap instead of real market shares. Perspective is everything. Most of our economy lies in small to mid sized companies
@@Kactus479 Not to mention cheating.
@@bernardmcavoy1864 *laughs in USA and China*
In suggesting the decline of German industry, you confuse market cap with market share. Tech companies have higher market caps because the value of their stocks is more likely to rise, while car companies tend to be steady earners. Neither measure indicates German car sales, or whether they will sell more or fewer cars in the future.
They are more likely to rise because the discounted future value represents a high price, they are likely to be bigger in the future and that’s reflected in current pricing
This.
Yeah, market cap is more of a measure of confidence towards the company. I mean there are companies that are undervalued because the market cap doesn't reflect their market share.
Perfect analogy my friend, Koreans, Japanese,Indian and Other Asian players have already taken over the market from Germany.
@@mohd.bid3n639 Korean heavy industry exists because they are buying and operating German machinery.
Germany has many strengths...but the insane idea that renewable energy can power a modern manufacturing country will hurt them. Closing down 8 nuclear power plants was a huge mistake. As for German cars-they are very complex and such complexity increases the failure rate. Diagnosing trouble codes is very difficult and time consuming-and repairs on German cars cost a fortune.
I am German and yes there are huge problems, but in comparison to other countries I think we we aren't doing too badly...
I am not German, and I agree.
You are doing Great.
You have to see it in the long run. Check the demographics. The German economy will be less and less sustainable in the future and this will be visible within the run of this decade.
@Dragon Lee Pretty much to any relevant country there is that has more than 30 million inhabitants.
@@dinos9607 'Sustainable'? Where is any economy in this world 'sustainable?' Even China's economy is not 'sustainable'...Currencies float, markets change, no one ever imagined COVID-19, etc., etc.
The backbone of German economy is the Mittelstand, not the car industry. Many hidden champions there who always followed a long term perspective.
hmm...will there be driveless cars 🤔🤔
@@chocolatecreamcat915
The next ten years I don’t think so.
Yes, but this will be news to America and many other parts of the world.
Exactly. German people are very well educated and competent. We also contemplate the future instead of only reacting to the present.
Just because Americns set the benchmarks we have to follow (market capitalism), it doesn't mean we are worse off.
Mittelstand and hidden champions are of the past,What matter snow is Big Tech. Only 1-2 teracorporations can survive, this is the currrent rule in global economy. Such as Google,Amazon,Facebook,Samsung,TSMC. Especially Samsung which makes many things Germany can't make-not just semiconductors, its main business that feeds a population of 50 millions. All tallest buildings in the world have something Samsung in them,such as hypertensile concrete without which they can't be built. Maersk's icebreaking supertankers are another example of things Samsung can make but Germany's Mittelstand can't. This is simply how the global economy functions.
From my perspective, German products seem to have a better handle on digital design than other countries. MBUX that I have in my new MB is far better designed and works far better than any other infotainment system in the car industry today including from Tesla
I work for German company and when you talk about digitalization and benefits that the company can reap is like you are talking alien language.
Germany industry is still living in the 1860 industrialization era and I think their thinking is “if it’s ain’t broke why look for something new?”
it was very profitable but clearly they have fallen behind in terms of competition
If I were British I would be less worried about the future of Germany at the moment. One could argue that bringing out such a documentary at this time would be an attempt to distract attention from one's own problems in the country.
Ah i rather think germans like to moan that things could go better thats maybe the image once u lived in germany especially as an expat like this journalist.
Correct comment.
probably that is the british humour...
Unnecessarily bringing the Brits into the conversation. Please stop.
You mean this documentation is trying to make Germany not succeed?
Quite obviously The Economist has lost its edge, especially when it comes to science and technology. How else could they have been fooled to be impressed by a solar panel equipped car and state that this could upend the car industry? One could expect that journalists at The Economist would have looked up Schockley-Queisser-Limit to understand that solar panels on a car cannot possibly be anything more than a PR gimmick. The laws of physics cannot be bent, least of all by marketing.
I don't think an engineering company would be foolish enough to oversee the maximum achievable efficiency of a solar panel. It may be used to increase the working range of an electric powered car.
I don't think they meant to present this as an ultimate technological solution, but rather as an example of a company that goes outside the traditional way of thinking of Germany's old companies. Global industries are not going to bring the solutions that solve climate change, they generally benefit from maintaining things the way they are.
Agree! Since German auto makers cant offer one single direct injection hydrogen engine based car they, from their titles outlook claim, have NO future at all! Toyota just had a racecar with a direct injection hydrogen engine completing a 24 hour tough endurance race, so seems the future are Japans! (?).
Exactly, I was wondering how solar panels just on the car alone would be able to make a dent in the energy requirements of a vehicle.
Oh man, this comment concludes this video. I don’t even want to watch it anymore
@@argh100100 No it won't. The surface area of a car is so small and the energy requirement to move it is so large that the extra milage is negligent. We are talking about 3-4 kilometres for a full day of parking in the sun under optimal conditions of light and angle and no heavy load nor elevation, and even then it may be less than that.
This is just awesome how experts can predict everything
Yes. On one hand one can see a lot of high quality engineering, but on the other hand, a lot of high quality regulations.
As a developer of an autonomous micro-mobikity solution, i can say that regulations in Germany are the greatest challenge
2:47 It’s a bit misleading to give absolute numbers over such a long time period. The German economy has grown too in that period. Therefor it would have been better to show the growth relative to Germany’s total trade.
Btw the EU internal market is Germany’s biggest trading partner with 59% of all German exports.
Export (not trade) numbers are:
1. United States ($131B),
2. France ($115B),
3. China ($107B),
4. Netherlands ($87.7B)
So those billions are that 41%? Just to be clear, when we buy german car as european/EU member(non german citizen though), it counts in that 59%.
The Economist... it’s like BBC, it could be misleading ;))
The economist like the BBC is about misleading... Germany is always ahead in green technology and innovation.
I am an indian but when I watch this news I feel that it's mis leading..
@@effexon No, those billions are total exports. It puts China in third place but the video suggests China comes first but that’s trade, so exports and imports. Exports is however where money is made and therefore imo more relevant.
It’s hilarious how the climate-change-answer has been reduced to „just make everything electric“ very often. How much it costs to make an electric car, where the electricity comes from and how bad it is for the environment to recycle an electric car.
Yes you right. However we on this planet have to stop burning so much fossil fuels. So only when the world gears up the same as did the Allies in WW-2 and realize that we all are in this together, will we have a chance to survive. As a proud US citizen and service connected disabled combat veteran I am deeply ashamed how my country has failed to take the lead in this vital undertaking. Our Republican Party has for the most part sold out to the fossil fuel interests, and most Republican voters are climate change deniers due to Fox News and other propaganda. The young people of the world are on the march to a climate energy justice world, but will it happen in time? So we must get past the " negatives" as there is less and less time. We simply have no choice but to move to take fossil fuels out of our lives in all aspects of energy, farming, industry, transportation, no matter how hard it may be. We did it before in WW-2, we can do it again if we have ther resolve to do so.
@@genegarren833 no sense at all
The important thing about the marketing of "environmentally friendly" cars is to make them huge SUV's and squawk about how ludicrously fast they accelerate- presumably because if they are very large, heavy, with huge batteries and amazing acceleration they only use electricity which is almost inexhaustible and doesn't harm the planet. We really have got climate change cracked with electric cars and no mistake...
Yes coal plants are still a significant source of electricity, but at least a growing portion comes from renewable sources. The same cannot be said for gas powered vehicles. Also electric vehicles use electricity more efficiently than combustion engines use gas. So overall, Even taking into account the high initial carbon cost of manufacturing an electric vehicle, electric vehicles are still significantly better for the environment over their total life cycle. Do you really think someone as smart as Elon Musk who would have overlooked this? The entire Tesla corporation is literally built on the fact that electric vehicles are better for the environment over their total life cycle. Tesla has many enemies. It would've been easy for any of them to pump money into getting the word out that EVs are worse or just as bad. But they haven't. Because they know it isn't true. Do the research. It's well documented at this point.
especially if you link the electrification of car to the leasing model which incentivizes short-term posession... can the environnemental investment an electric car represent truly be worthy in 4 years time?
Excellent content and beautifully presented !
This well-designed video tells us the present state and prospects of Germany's car industry. From my perspective, the following booming directions for the car industry will be automatic driving and Internet control. These are what other renowned motor companies like Teslar are exploring right now. Therefore, traditional German giants such as Volkswagen and BMW must take these new fields into account and manage to claw back the global motor market share. Besides, there is a new powerful competitor-China-that has joined this market. Since China has represented an initiative called Carbon Neutrality, which will be achieved ten years later, the ambitious motor companies, including some small-sized startups have been advancing at a rapid pace with the government subsidies. Apparently, China is going to grab a huge amount of the cake in car industrial imports and exports.
Journalists are called professional experts on nothing for a reason.
Don't disgrace journalism for the copy&paste jobs in publishers like the Economist.
There's a big difference between quality journalism, reporting and advocacy
@@toyotaprius79 I don't have to. These people do it for all of us.
Why don’t you share an example from this video with us:)
@@toyotaprius79 quality journalism, reporting and advocacy is actually a threat to national security, all of them
@@Techinvestor567 the whole video iscsn example. Wake up!
It's the first time I heard from a bigger media regarding this BIG problem. Of course it's not coming from the inside but from outside. The world will be fully digitalized rather sooner then later and Germany IS falling behind on this. We were and we are still a global player but we will fall behind incredibly fast if the governance is not reacting faster. The lack of digital infrastructure is frustrating so see as a young person. Many big brains here will consider leaving the country for a more progressive work climate.
lol. Glaubt denn einer wie du, schnelles oder langsames Internet hat irgendwelche Auswirkungen auf einen globalen Handel. Glaubst du Hunderstelsekunden haben Auswirkungen auf irgendwelche globale Kaufentscheidungen. Das interessiert vielleicht dich, weil du nicht mal mehr eine Sekunde auf ein unwichtiges Video im Internet warten kannst, aber die Wirtschaft interessiert das 0. So einen Mist machen euch die deutschen Politiker vor, "Ja, das größte Problem ist die Digitalisierung in diesem Land." Wo ist denn das digitale Problem? Etwa 5G?Wirtschaft, auch die globale Weltwirtschaft, basiert immer noch auf Geld und nicht auf Computer-Bits and Bytes.
Und wer sind denn deiner Meinung nach die "big brains"? irgendwelche klima-Aktivisten? Oder unterdurchschnittliche Software-Ingenieure mit Bachelor von Unis auf die sie gar nicht gehören? Du kannst dir sicher sein, dass die besten Ingenieure, Software-Entwickler, usw. bei deutschen Unternehmen bleiben. Nur der Ausschuss muss gehen und das ist auch gut so, weil die braucht niemand. Leider sind heute mind. 50% der "Uni-Absolventen" nicht mal mehr auf ehemaligem Abiturs-Niveau und wenn die gehen, ist das kein Verlust für Deutschland.
I'm not German, but I'm curious what is lacking in digital infrastructure there compared to countries such as the US/China?
@@brandonfernandes5698 There have been a major decision like 40 years ago or so where the government decided not to use the modern fibre standard but stay on the current copper cables. The result of this decision is visible today: I'm currently moving to a mid-sized city (30k) and in the apartment that was built 8 years ago the maximum internet speed is 6 Mbit. In 2023. And can you tell me one major web company that is coming from Germany? US/China are dominating and will do so in the future. We can't even call each others if we travel across the Autobahn. I had a call with my friend last week and he was driving on one of the biggest Autobahn in Germany but the connection was lost every few minutes. It's disgusting here. And there is no real path to change that. It will take decades to fix this.
@@portzir jesus that’s crazy bro
Hybrids yes, battery only NO! Hint: power grids cannot handle it without Atomic and/or burning coal.
Germany is running all time-high on exports and trade balance while UK is struggling with putting fuels in its cars and filling its supermarket shelves…Most significant British car companies Bentley, Rolls Royce etc. are owned by Germans…British supermarkets like Tesco are being taken over by Aldi and Lidl…So British people shouldn’t worry about how Germany is doing…Maybe first find a way to fill your fuel tanks…!
when in doubt, blame China could always solving your problems.
Much respect for Germany. It doesn't sound like their challenges are very different from ours in the US. Perhaps much of this is the times we are in. Best wishes to them in their future endeavors.
Yeah, but Cars in themselves are kinda a Problem.
Theres many valid reasons to say Humanity should really slowly move away from them.
main challenge USA is having from its deep divide internal politics of racism
the lap dogs?
My best wishes for the USA.
Oh Nancy, thank you so much. I wish the same for you `far West`... We are sailing in hard weathers :)
Oh dear, how shallow. Is the Economist in any way still serious?
not serious, not relevant
@@gustavmeyrink_2.0 DW documentary of same subject? They've made quality docs in youtube.
As an outsider I think what they are saying is correct.
Germany is sliding backwards. As buyer and operator of industrial machinery and production linee, I have have noticed a big decline in quality and value for money. With the last big project I found that most of the bigger, costly components were actually made in China. So I had bought Chinese quality at German prices. It wasn't a satisfactory experience.
The fact is that Germany's obsession with 'green' is driving up cost to uncompetitive levels.
As another example of the slide, look at the cars. Before 2000 German cars were relatively expensive to buy but cheap to own. Not anymore - they are notoriously unreliable and lacking in durability. They depreciate to virtually nothing with 8 years. The reason in my opinion? They are cutting every corner they can think of in order to remain relevant.
Also pinning your economy on China is suicidal - you are depending on a totalitarian regime who will cut your throat the moment it suits them. I saw that happen to a French company I was working for @ the itme.
@@gregculverwell I totally agree on that china part, I've been puzzled since 2015 they started pushing that trade relation more strongly, while it is not substantial part of export, bigger than any other top5 trade partner. And it comes with heavy price of non money kind.
But also I've seen poland booming at the expense of german production shifting across border there, causing slow decline whole of 2010s. But this china thing is much worse, it costs time(of communication) and those other things you cannot repair with money. I hope not all german industries and companies have shifted this trendy direction... car industry has been notorious with how much they have lobby and legislation power in germany and whole of europe. Result is stagnant and cheating big companies lagging behind progress demanding always bigger shortcuts and subsidies from government. Some small car companies can be competitive though. It's a shame though that tradition and workmanship is hard to bring back once lost.
@@gregculverwell Meanwhile according to the OECD the German economy will grow by 4.4% this year while the US, Uk and China will all shrink by 3.6, 5.5 and 5.8% respectively. Yeah must be tough being Germany.
The Economist is quite funny. The lack of energy is the elephant in the room you aren't talking about. No energy, no industry.
As a German iam afraid of the economical future of my country. All the problems you guys mentioned are on the table for almost 30 years but nothing changed since then.
30 Jahre ist eine doch sehr hohe Zahl, findest du nicht? Vor 30 Jahren war Digitalisierung in dem Sinne wie wir es heute definieren gar kein Begriff. Der Klimawandel wurde von fast keinem Land als ernsthafte Bedrohung wahr genommen. Die meißten größeren Probleme kann man meiner Meinung nach auf die letzten 10-15 Jahre zurückführen.
@@_malte9367 nein finde ich nicht, in der Doku werden mehr Dinge angesprochen als Digitalisierung und der Klimawandel…
The content bring little information, the narratives are speculative and statements unsupported
That is anti-Human Bloodthirsty Magazine, "The Economist" for you.
Yeah, but we clicked, right?
Will you be saying the same if the video is praising China? Judging from your channel :)
@@BillLaBrie I think is important check out what sort of garbage they are selling to people in general. It's part of world understanding. My humble view and praxis.
Agree....Since German auto makers cant offer one single direct injection hydrogen engine based car they, from their titles outlook claim, have NO future at all! Toyota just had a racecar with a direct injection hydrogen engine completing a 24 hour tough endurance race, so seems the future are Japans! (?).
Germany's future is in deed a very, very serious topic ... but this Economist clip is less than mediocre in revealing insights into Germany's dilemma.
Germany will adapt, but its going to be painful unless you switch to EV & battery production on a mass scale very very soon.
In Norway 90% of private cars sold last month were EV or hybrids.
@ghee cappy If you cant spot a trend like EV deployment, you are completely & utterly blind. I bet your great grandfather was the guy denying cars were the future in 1910...
@@la7dfa Hello, I'm not shure if you can compare Norway with Germany or a other country wich have not the naturel resourses like Norway. In Norway it makes aktuell sence to use the water and wind power, because you have more than enough. The ironie is: Norway financing all the investments with selling oil, gas, electicity and fish. Think about for example Norway would Stop oil and gas exports, maybe this prices will rise a lot. So billions of people in the world have a reason to find other ways of producing and reducing energy production
@@thorstent2542 Yes ofcourse we have the best possibillities for hydro and wind in Norway. And yes it is also double standard to produce oil and gas, when it emits CO2. But on the other hand, the world needs time for the transition to renewables. Germany have done an amazing job switching into solar and wind, but you really should also be using nuclear power to get rid of all coal burning power plants. Coal does not only emit CO2, but also shorten life expectancy more than people realize.
I hope Norway can deploy storage of CO2 into the old oil and gas shales. We need to use most methods to keep CO2 at a reasonable level. One big hurdle is the power demand in the World will probably double over the next decades.
@@la7dfa I think the switch to battery is already on going in Germany. All car manufacturers will not need as many plants as they have now, therefore they are changing a few of them into battery productions. Furthermore they are buying start-ups for innovation, Germany is one of the biggest investors in R&D worldwide and is sitting on one of the largest lithium deposits in the world (enough for about 400 million EVs). So I think the future might be promising, if the steps we take now are the right ones. But some new high tech/it startups wouldn't hurt ;)
"The Economist" makes the same mistake so many do: Germany is not corporate Germany. There are very few corporations in Germany, most of the economic powers came from middle and small companies. The number 1 tunnel driller and tunnel drill machine manufacturer is Herrenknecht. A medium size company sitting in the black forest. Not a corporation.
In the US nearly everything is corporate. Big chains or quasi monopolies. Germany will never get to this state as this would not be sustainable with the German system.
been living in Germany since 2019 and I must say Germany always quietly manages to change things around.
The Economist is still trying to work out what an industrialised Western country looks like?
With no shortage of food and fuel. Wait....
@@maggiejetson7904 Let me guess you don't live in the UK but only listen the all the anti Brexit propaganda on the internet...
@@trevtall1094 It's not propaganda, it's humor. But since you Brits have your very own understanding of that, I don't think you'll get it :)
@@floriandiem1223 So we've got to the stage where people are labelling propaganda as humour, is this something new out of the bullshitters playbook?
Imagine talking about the future of cars in Germany and not mention Tesla's nearly built factory...
Also, almost 2min of sponsor message from the Sono startup
This video reeks bias and financial struggle
Do you mean the Tesla factory in Berlin?
@@pookiewookie7679 no the one in his mom's backyard
The future of vehicles is electric. As of now Tesla is the leader (with the Chinese not far behind). Tesla putting up a factory in Berlin, will spur all German car makers into making EV. Hopefully they are not too late.
Tesla is a lot of hot air. Completely overvalued stock. Once people realize that Elon Musk is a con-man the market will collapse.
Great piece, indeed. Digitalization and innovation are the keys
In the year 2000 trade between China and Germany was app 16 bn. About the same time, China's trade with South Eastern Asia countries was only a few bn more. In 2018 China's trade with Germany reached 180 bn, but with SEA countries overcomed 600 bn. Conclusions are more than obvious.
The stock video at 10:33, with the green and yellow trams, was taken at the intersection of Mannerheimintie and Kaivokatu, in Helsinki, Finland.
Little did I know, how much this Information was needed 😅👍🏼
Ei hyvänen aika... Well done the Economist. Germany´s economy is strong because they make things you need to make things. They also make things to make things to make things.
I was about to comment this 👍😂
Quality journalism...
As long as Porsche doesn't work on extrem heavy cars named after animals. Everything should be OK
I Like your Nickname together with your comment.
@@brodalf4969 thx you
To be more precise big wildcats
@@shanghai72 Or some long trunked tusky fellows.
These days we have Rheinmetall and Krauss-Maffei-Wegmann for extreme offroad mobility.
There's plenty of highly skilled young software and electric engineering professionals in Germany, they are just frustrated with how the big companies operate and tend to go find work in other areas/countries that value those skills appropriately.
Their cars are an end product, what is more important is to look at the process, their philosophy, their education and discipline, more than the end product, which changes just about ever six to eight months.
Yes, if only most companies would use German software to run basically every major process inside ... Oh wait.
Yeah... I think they're getting overexcited about more gimmicky consumer tech like facebook and apple phones and underexcited about the workhorse tech like SAP that isn't in everyones face all the time.
The car is 'high tech' if you can see it's got a screen running uber in the middle of the dashboard but all the tech you don't see doesn't seem to count.
Corporations like the German software company "SAP" as well as American businesses like Cisco and Juniper Networks and IBM and Oracle Corporation and Sun Microsystems (which was acquired by Oracle) are not understood by the general public. So the average person on the street does not understand that SAP (a German software tech business) is running everything behind the scenes together with Oracle and IBM and Microsoft. Germany had its own Linux computer operating system called "SUSE Linux" but they sold it to Novell, didn't they? And the KUKA robotics corporation was sold to the Chinese, wasn't it?
Errr....what about SAP enterprise systems? Isnt it german?
@@poovaneswaransupramaniam19 he was being ironic pointing directly to SAP 😉
Since German auto makers cant offer one single direct injection hydrogen engine based car they, from their titles outlook claim, have NO future at all! Toyota just had a racecar with a direct injection hydrogen engine completing a 24 hour tough endurance race, so seems the future are Japans! (?).
For a country that has bounced back even after loosing two world wars, the future will always be bright!
Yes, especially kowtow to totalitarian government like China. Germany is used to obey order from fascist government.
Well it bounced back because of the presence of highly industrial Nature of it's economy
It won't bounce back if that industry is in danger.
@@_devil536 exactly, especially after 2nd world war they were massively helped by US
Yeah after ww1 we had nothing but debt...
@@jmlin501 傻逼
Here's what customers do not want: Expensive disposable cars.
The quality has been drastically degrading in German car manufacturers over this years, not to mention the cost of them now + the repair parts.
Says the Economist who is waiting in a week Long queue to fill up his Car with Gas. 😂😂
The makers of the report didn't done their homework well! Sono motors tells the customers since years to sell a real car, in reality it's a BMW i3 mainframe with some raw parts coated and a non working solar power roof. Ok the moss cabin filter seems to be an inovation ;-)
This is insulting Germany to show that as example for a technical leadership startup!
Regards
MN from Germany
I also noticed they said that the industry should be selling fewer cars = not everyone who owns a car now should have one later on.
My issue with electric cars is that they ride like toaster ovens.
Germany's car industry needs to modernise: meanwhile mercedes having the most developed autonomous driving car of the world at stage 3 (tesla is on stage 2)
That's not true because Mercedes scans the roads before their cars can drive on them, while Tesla teaches their cars to drive anywhere without scanned data. That's also why Mercedes' autopilot has more capabilities in Germany than Tesla's. However, Teslas can drive completely on their own (as you can see in the US) and if German laws were different, Tesla's autopilot would be better in Germany too. The way that Mercedes is going is not future-proof, Tesla's is, even if that hurts me as a German. What you are talking about are only german regulations.
Its not really the same, Mercedes has a system that is using "HD MAPS"/geofencing, so basically it is coded for how to react on a given stretch of road.
It is also limited to 60km/h and to a short stretch of freeway in Germany.
Teslas system is coded to understand every road and situation as it happends.
I am not saying here what is best, but imagine this: The Mercedes sollution means people have to code stretches of roads and if something changes, someone has to update it.
Whereas Teslas sollution means the car adapts and understands.
I know Mercedes is approved for level 3, but do know that it is limited for very low speed, for a very short stretch of road - in Germany.
Who is on Stage 1??
Glad there are some channels like economist on youtube. Its like a fresh air.
Luckily for us 'Brits' we don't have a car industry of our own to have to worry about such things.
There used to be one. These companies were run into ground. Some of the brands were saved by … German companies.
@outerrim Who said anything about overly, any would be nice!
What are you talking about? The UK has one of the largest car manufacturing sectors in Europe.
@@StumpyVandal What are you talking about? We do car assembly for non UK car manufacturers and we are no where near the largest in Europe. Major decisions are in the hands of the foreign owners. Germany, France and Italy all have their own major brands, we have none now.
@@gordoncharles741 They’re still assembling and exporting up to a million cars per annum. A lot of the components even in France and Germany are manufactured elsewhere. It’s not a small thing. Many would say that pre Brexit the UKs diverse light industry was a great compliment to the remaining heavy industry and the shift away from large scale heavy industry wasn’t an entirely bad thing. Of course now exporting is a bit tricky so we’ll have to wait and see what happens.
I’m British and not an economist- but….. I studied German and and French in the early 1980s at University. I worked in Sonnen Basserman as a student in the summer holidays as well as school exchanges prior to that. I have a knowledge of - and 46 year affinity with - Germany and it’s culture. I buy German white goods for my home & garden e.g. Bosch ; Birkenstock for my feet, Dr Oetker for my face and shop at Aldi & Lidl etc…… German goods are respected worldwide for their quality and reliability. I think as a people they will creatively adapt their hard work to produce what people will buy. If that isn’t their cars it will be other stuff.
There's more to Germany than just cars some of the greatest minds came from there . In southern Indiana German settlers created a thriving community . Great furniture making , churches , and never say die attitude , feelings of committee .
BOSCH, SIEMENS
@@willfried5500 Johann Sebastian Bach.
Most of car guys in germany and around the world hate the new genereric looking soundless electric cars. Its fine to have one, but every car guy would have 3 petrol cars for every electric car he owns.
Relax, Germans can handle the problems.
I would be worried about the Italian, French car industry.
Everything going fast.. and you are slow.. and then you. have no time for panic.
@ Lamborghini is under German ownership under the Volkswagen Group, so was Bugatti until recently.
Lie back and enjoy German innovation!
I think all European companies are glued together. There is a joint battery and hydrogen research setup backed by a joint Franco German government dept. They are pushing ahead far in advance of other researchers and will deliver the goods.
DS and Peugeot are making some very beautiful cars but they are charging too much
Lets keep in mind that back in 1910, one-third of all cars in Berlin (and so in New York) were electric. Kaiser Wilhelm had an electric car too. They had a range about 60 miles, and driving them was a piece of cake. No pedals, you pushed a stick forward, the car went forward. You pulled the stick back, the car went in reverse. Ten years later all the electric cars disappeared.
In the beginning EVs were faster and had similar range (because early combustion engines were awful). The only reason they were fazed out was because of big oil. There was more money in petrol. Awful.
Its nice seeing Helsinki, Finland at 10:33 as part of Germany's future
For product quality, i think German, Italy and Japan is the lead of the world.
The video is so badly researched. It almost feels like a hit piece. How often has the economist prophesized Germany's doom? Volkswagen alone builds a 6-digit number of electric cars this year. How many Western car manufacturers that aren't Tesla build that many electric cars?
Tesla isnt even close to Ford or GM
@@TheFlamedog We are talking about electric cars. Not about the number of cars in general.
Except Tesla, other Western carmakers are a bit late with electric. China has at least 100 manufacturers making electric cars. The only question is when will they start exports. That will be scary.
The past is a history, the future is a mystery, and now is a gift. The whole world will face challenges, not only Germany, and the outcome of that struggle is still unknown. What we need to remember is that Germany is a manufacturing powerhouse. The skills and tools are there already. It’s just a matter of what direction they choose in the near future.
did you really quote master oogway on this topic? what a legend
Manufacturing powerhouse without energy, congratulations
@@ninal3973 Nina, Tom schrieb es vor über einem Jahr. Mittlerweile wissen wir, wohin die Reise geht: mit den Grünen in die Pleite 😅👍
the workforce needs urgent up-skilling and being less reliant on 'heavy' manufacturing and engineering, and more on IT/digital services.
加油
Went from BMW to LPG powered RAM in January 2022 and will not go back anytime soon. The drivetrain of German cars became a nightmare in terms of quality since the downsizing "Zeitgeist". Granted, all my engine problems were covered by the manufacturers, however, this is not what I expected from "German Engineering". When I look into the manual of the RAM, the first CAM drive chain replacement is scheduled for 300.000 miles. Sustainability is not just emissions of CO2, but also how long does the product last. Germans fail today in the latter, in my opinion.
German main Industry is cars
USA main Industry,50% is unfortunatly weapon 😭
„Playing catch-up“ as the market leader? Even in Electric cars. Total Exports are 50% of GDP but it does not make up 50% of GDP.
There are plenty of inaccuracies in this video, but it mainly follows some prejudices.
The real challenge is to fight protectionist tendencies in the US and China. Also it is facing an aging workforce.
@@kreight_ it was more of a cliché or satire. A video on how German beerfests are an indicator for entire German economy might have been just as relevant.
When it comes to electric cars and autonomous driving, Germany's automotive sector is, indeed, playing catch up. This doesn't mean it can't be a global leader, but major players such as Tesla and Toyota are slightly ahead.
@@defintity_9951 Toyota is in a worse position than VW. Tesla will be the market leader, then Koreans and then Chinese. EVs threaten every part of Germany's auto industry - parts (ZF, Bosch), dealerships, service centers and assembly line jobs. Legacy automakers have too much debt. This is like the phone market with Nokia. You can't compete against Chinese on margins and they'll hire German talent for build quality.
@@ryansmithc We will see, VW got their own Bank and City, so don't underestimate them.
you can't be serious. there are a German carmakers in China. Tesla is in China. protectionism? 😁😁
I love when people from coutries with empty shelves and gas stations explain Germany how to do business. Funny experts you are.
If you see 50.000 not finished ID3 on parking lot, it should a moment to stop and start thinking about your processes and strategy. Are you a different opinion?
Germany can't cheat this time, dieselgate only works once.
@@AgentSmith911 Sure, people who don't know the difference between Germany and Volkswagen explain the world. How low can you go?
@@xnespor1 its called a resource crisis thats going on with everything atm, want a ps5 ? gl because theres less production, want a tesla ? hf waiting atleast 8 months for it, want a new graphics card oh lord be in for a surprise my guy, the id3's are not finished because the child labourers arent mining hard enough
Your comment hasn't aged well. I never experienced empty shelves and, whilst there were some hiccups with petrol supplies, we always had enough. We still have hot water in our public buildings too.
"To see Germany's future, look at its gas supply"
Corrected it for you!
Imagine if the USA understood the importance of manufacturing?
then china wouldn't have grown so strong
但他现在又很弱小，拉美化了 就像苏联和朝鲜一样，衰败起来也很快。现在房地产崩盘，内外交困，外贸脱钩 年轻人失业率50%工资回到十年前。就这情况，还在天天给独裁者送钱充面子
Germany's cars are amazing so their future will be amazing. perfect logic.
The headline is the only thing that makes sense here.
I can't agree more!
And then you will be loser..
So what has happened to the once beautiful BMW designs?
@@markyboy531 BMW is basically the #1 car manufacturer in terms of quality. Look at their subsidiaries.
Not at all what it means.
Germany is going to cheat there way out, look at VW dieselgate. 😂
The reason nobody makes a solar-powered car is that solar cells don't produce enough electricity. Also, cars don't need "ride-sharing software built-in", the apps run easily on the phone every driver has in her pocket. What happens when you're having lunch and you get a fare? Does the car come into McDonalds to get you?
Read your script out loud before you go live, Economist, you'll save some embarrassment.
Agree with you on the Economist’s increasingly lazy and sloppy waffling. On the matter of ‘enough energy’ I’ve always thought that the kink with solar was never in its energy generation/capture capacity so much as in the ability to store that energy (which current generation of batteries have largely overcome). I may be wrong of course
Yeah built in solar panels is a total gimmick and it made me feel sad just to see it being taken serously.
The amount of power generated by built in solar cells on a car will never be sufficient.
you'll get probably 300W of electricity per square meter of car surface maximum... provided it's a sunny day, and you aren't parked under a tree or in a multi level car park.
The solar car company will need to pivot to a more normal ev or go out of business once it's burned through investors money.
yeah, it's really sad how much hype such snake oil sellers get.
"Built-in" just means the car can communicate its location and status in real time. You can't rely on owner's cellphone for that.
Ride sharers can take themselves out of service whenever they want. That's a feature built into current ride sharing apps such as Uber and Lyft. I can't imagine that feature wouldn't be part of an app on board a vehicle.
The CAR !!! was invented in Mannheim in the 1880's.
I would ask the German car manufacturers, especially BMW, to also forget about the business model based on inducing their customers to buy a new car every 3 or 4 years. it is unsustainable because it is highly polluting (upgrading small pieces instead whole car?)
BMWs seem to be designed to last only three or four years until expensive maintenance is required.
@@DM-hw4cr expensive for wealthy customers? or just the planet? that's the question
Richard Werner, an economist, looks at Germanys banking sector which invests in local economy. Germany has many small companies that are world beaters. The economist is City of London, and hence cannot understand.
@@myfishisnothappy1595 Yep. City of London. The square mile. Banker sovereign territory.
"To see Germany’s future, look at its cars."
So Germany is going to be an overcomplicated money pit?
Nope, that it is already, has been so for 7 decades.
@@DasIllu with a short break of 12 years as world-unmatched cruel monsters
@@olegkirovskii2720 "cruel monsters" what are you smoking?
@@Zebra-de8od have you heard of wwii?
@@olegkirovskii2720 yeah, and?
Now they're in a totally uncharted territory, manufacturing without energy and selling unwanted products in the midst of a recession.
Nice of you to include shots of Helsinki, Finland at 10:33 Can't quite pinpoint the association you are going for here, though. Slip of the clip?
Add the word 'systemic' in a sentence to sound smart.
I disagree, I think it's indicative of a paradigm shift.
@@drmodestoesq I concur.
No sentence has a shard of credibility unless the world "global" is used.
Ironically the more successful a country is with respect to the old fossil fuel based economy, the more challenging it may be to pivot to the new clean energy economy
Ironically, that's only because of short-term greed. The petroleum companies have the resources to invest in the next sources of energy, and the ones that do are the ones that will reap the benefits while the rest die kicking and screaming.
@ᛋᛋ Counter-Semitism ᛋᛋ
Not the case at all. Nice try though.
It is just simply economic problem. If the new clean energy economy are financial proficient and reliable enough then they will lean toward it.
If not that sector will rely heavily on government support and regulation which in turn take it from already strong economy which rely on the fossil fuel.
Talking about it is always easier than done on a national scale.
@@khan-cricket
The fossil fuel cars will not be made in the future.
@@bobfg3130 Yeah but right now the money go to invest the next generation is currently from the fossil fuel consumer.
Some electric cars for personal use is still really far from efficient enough in economy
To all my Germans friend, I learnt a lot from you guys, but recently more Germans coming here that only have Germany passport, no sign of genius, innovation or even politeness
Yes, they are German Moroccans, German Turks, German Iraqi Kurds, German afghans
They only borned in Germany, but they think, act and plan just like of their Homeland,
So in past 10 years, I welcomed a true German here, not a fake one!
Very true and very sad...indeed...
Thanks for that
Love their ECO recycling strategy - "When car's warranty ends, sell it to eastern countries and buy a new one for yourself".
I've always looked up to Germany as being the leaders in promoting clean energy and looking for sustainable models, especially if you consider the fact it is the main actor in the EU. It surprises me they've been falling behind on clean energy generation and new car model production. However, I disagree that will last for long; they are too capable to let that happen.
No, we are not :). Having worked in that industry, that "clean" stuff was as fake as our unemployment rate, inflation rate etc. From the Diesel gate scandal to our very unique way of defining car fuel consumption. Nowadays, big companies/banks/states make money from betting on the chinese build bubble(where they build one void city after the next). Quality is going down. "Made in germany" will go back to its original meaning. We are done.
Germany lied about their clean energy accomplishments for years. Germany has too much debt. Third-world companies are passing them up.
Any clean energy advocate that doesn't recognise nuclear and acknowledge how inefficient cars (even the electric ones) are is a LARPer.
Not anymore
Most patents on electric cars are hold by European, Japanese and American car makers in that order. Whomever your consider to be leading in clean cars, is just a startup with no knowledge and neglectable research investments.
Never fear: they’ll not only “catch up”, they will overtake.
Germany is too reluctant towards digital and convenience and service and, happiness, which means basically facing humanity in a more cheerful way, instead of just always settling with a sober and calm vibe. These aspects are key for Germany's upgrade, if it wants.
What u describe is the modern way of achieving happiness which is only short-lived.
Being British, the Economist may be biased. The strong focus on the financial sector in the UK poses a similar risk as that on car manufacturing in Germany. But truth is that the last 16 years of Angela Merkels reign in Germany saw little progress, but rather pushing critical issues and how to solve them into the future. "Duirchmerkeln" as sort of "muddle through" became a meme as well. So, yes, the upcoming German government has a lot of work ahead of them.
A few thoughts: Will future mobility be "owned" (like todays cars) or will it be "on demand"? Will there be a stronger focus on public transport in parts of the world? The answer to these (and probably some more) questions would influence a rather strategic decision: Should Germany focus on becoming again the leading car manufacturer? Or should Germany rather focus on other areas as the demand for individual motorised transport aka cars will shrink?
Also: I just watched a video about the devastating environmental effects of mining all that is needed for greeen energy and electric mobility in other parts of the world. Be it the huge amounts of copper needed for wind turbines or rare earth for batteries and magnets - it most often leaves wastelands or drains all groundwater in that region of earth. So do we continue to ignore that, or do we find ways around that? If not, given the incredibly high demand for these materials to foster a "green revolution" worldwide, this revolution might face serious setbacks in a couple of years. Not knowing this is making predictions pretty hard. That said, Germany does have to make a big leap into the digital world. Now.
In the 1890s, Los Angeles had the most advanced and widespread public transportation system...in the world! The Pacific Railway. From Palm Springs to Santa Monica. It was convenient and the fares were low. The system was discontinued in the 1960s, in favor of a bus service. A poor decision. By the 1980s, the decision to reinstate the "RedCars" was made. In 1991, the Pacific Electric Railway came back to life. Augmented with the bus service; you can re-enjoy the gloriful vista's, as you breeze from one edge of the county to the other at 80mph. Stress free and not stuck on some crowded freeway.
Versuchen Sie bitte das nächste Mal, einen Teil der Reportage für die Kinder in Afrika zu schreiben, die die Mineralien für all diese wunderbaren Innovationen abbauen.
Next time, please try to include part of the reportage for the children in Africa who are mining the minerals needed for all these wonderful innovations.
Are these the same children who are mining cobalt which is wasted in the process of removing sulfur from fossil fuel?
Sind das die selben Kinder die Kobalt schürfen, welches dann im Entschwefelungsprozess für fossile Treibstoffe verschwendet wird?
For all that germany already passed in the past,this all just looks like a major annoyance.
Also:saying that germany is way too reliant on China is somewaht misleading given that germany has one of the most diverse costumer base from the developed countries with the difference between the biggest and the 10th being not that big,unlike japan for example.
nice mantra
🤣🤣🤣 a customer base is different from your supply chain. The UK is the 3rd largest importer of cars from Germany and bewtwen Q1 2020 and Q1 2021 there was a 12% fall. This may be partly to do with pandemic but they also have supply chain issues. Look it up for yourself
It took me 11 minutes to watch this video. I could have read a written article in the Economist with the same content in two minutes.
@ghee cappy Thank you. I overlooked that.
Well done you but based on many of the comments on here I'm not convinced others read that well. They just seem to utter anti-Brexit soundbites or simalar echo-chamber rhetoric - no research,.no facts just blah blah blah
You want to improve? Decouple from America, fix relationship with China, and Russia.
So this has aged well lol
All I know Germans always find the way.
Germany is the most overrated country! Germany from decades ago and Germany of today are not the same at all! It has the most lazy unskilled workforce outside manufacturing industry in Europe.
@@theancientsancients1769 I think we found maybe a "Muslim" envious butthurt here :D - Yea Germany is totally overrated as coming back after two lost world wars massive reparations and total destroyed country we only could come back because of US-Money... That's the false spreaded arguments of those butthurt peoples which love to deny the truth... Btw in the marshal plan the allied countries received more money in total than Germany...
@@theancientsancients1769 Our laziness is our hidden superpower ;) If it ain't worth it, we won't do it. Only we call it efficiency.
@@okene stay calm, the user answer you is “ANCIENT”, haha, they dont understand “FUTURE”
@@theancientsancients1769 hey kid , go & live in some stone age era 💩
Since you are talking about fear that Germany could be over dependant on the China market, I suggest that you should get America to buy German cars. That way, the problem should be resolved.
They do, big times
German cars are too expensive to fix. Sure, a lot of us Americans buy German cars, but more of us have caught on to avoiding German cars.
Why does everyone worry for us getting overdependend on everyone. "Don't build that gas pipe with Russia, Germany! You'll be too dependend. You should buy our fracking gas instead *wink* *wink*"..."Don't sell so many cars to China, you'll depend on them. Here are some cars from our catalogue for example *wink*." I am starting to get the feeling those suggestions are not in our best interest?!
To see the future of *ANY* country, look at the *Collective Consciousness* of the country in question. Everything else is based upon the *ILLUSION* of human intellect.
For your info: Germany has a total workforce of 45 million people, the car industry employs about 823 000 people that’s about 1,8 % of the total workforce! Even with a much smaller car industry, the country could survive easily.
did you account for all the supply chains? how many suppliers would be gone?
I think the challenges to German automotive industry holds true to all other nations. It is not uniquely a German problem. Each has their own cultural pitfalls.