The future of Europe’s core economy is at stakeJanuary 7, 2020
Machine production in Germany has declined to its lowest level in 25 years.
Bloomberg reports that last year German car production fell to its lowest level in 25 years.
According to experts, automakers such as Volkswagen, BMW and Daimler, by the end of 2019, 4.66 million new cars were released, which is the lowest since 1996. Experts attribute this phenomenon to a decrease in demand for cars in foreign car markets.
As Bloomberg emphasizes, the German automotive industry must spend billions of euros to create environmentally friendly vehicles and deal with car services such as Uber, which enable customers to travel together. To reduce costs, Daimler, Volkswagen and Continental’s auto parts maker have to lay off workers.
Experts remind that Germany has acquired the status of a world industrial power and the main economy of Europe due to the automobile industry. In 2015, the German brand received a strong blow due to the dieselgate scandal. It should be mentioned that then it became known that Volkswagen diesel car software underestimated the amount of harmful emissions during testing.
The slowdown in production was also influenced by a slowdown in the global economy, as well as trade disagreements between America and China. As a result, the demand for German-made cars has fallen sharply in the Chinese market, and this is one of the main markets for German auto companies.
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