
The German automotive industry is struggling with profit warnings, austerity programs and enormous pressure to transform.
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The German automotive industry has been the flagship of the economy for decades, but is currently facing massive transformation challenges.
Dusseldorf. Until just a few years ago, the automotive industry was considered the flagship of Germany as an industrial location. It was a guarantee for export success, technological excellence and secure and attractive industrial jobs. No other economic sector shaped the economic rise in post-war Germany in a comparable way. Embossed!
Today there is one profit warning after another and austerity program after austerity program. While the Dax is trading near its record high, the Auto-Dax made up of manufacturers and suppliers is around 30 percent away from its highs. Of the 40 DAX stocks, only the real estate group Vonovia is rated as poorly as VW, Mercedes and BMW.
Investors obviously have doubts that the German car companies will succeed in the necessary transformation. Because they have to switch their offerings to affordable electric drives in order to survive in unequal competition with Chinese manufacturers, to mitigate geopolitical tensions and to cope with rising energy and labor costs at home. The pressure to adapt has never been greater.

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