| German automakers are sliding toward a cliff | | | | Germans will order four-door Chinese cars |
| and risk taking the whole economy with them. | | | | from the discount supermarket chain Aldi |
| That is a warning given by Helmut Becker, | | | | Group for 3,499 euros ($4,780). ALDI, short |
| Bayerische Motoren Werke AG's former chief | | | | for "ALbrecht Discount," is a Germany-based |
| economist. | | | | discount supermarket chain - it is one of the |
| | | | biggest retail chains around the world. |
| If the auto industry is to believe to the | | | | |
| warning of the of the esteemed economist, | | | | German automakers' execs could not put the |
| would it be high time to say goodbye to | | | | blame on external forces. The 63-year-old |
| Porsche AG, Volkswagen AG, Audi AG, | | | | economist from the makers of quality BMW |
| DaimlerChrysler AG, and other German | | | | 3.0cs radiator showed catalogs that reflect |
| automakers? | | | | some errors and missed opportunities over the |
| | | | decades. The catalogs have specifically |
| The future belongs to Japanese, Korean and | | | | stressed DaimlerChrysler and Volkswagen. |
| Chinese carmakers, Becker writes in an | | | | |
| article titled "Ausgebremst: Wie die | | | | Some of the factors that contribute to German |
| Autoindustrie Deutschland in die Krise | | | | automakers' demise include ego-driven, |
| Faehrt'' ("Outmaneuvered: How the Auto | | | | bungled and tragically costly mergers, |
| Industry Is Driving Germany Into Crisis''). | | | | ill-advised labor accords on wages and work |
| | | | hours, environmental lack of forethought in |
| Some experts in the industry said that it | | | | missing out on hybrid engines, and an unwise |
| would be wise to heed Becker's warning which | | | | concentration on boy toys for saturated |
| is supported by statistics and market | | | | Western markets instead of competing on |
| analysis. | | | | small, affordable car segments. |
| | | | |
| "I turned the last pages in amazement that | | | | How powerful are Asian automakers? This year, |
| the industry is still afloat let alone that | | | | the Toyota Motor Corp. has surpassed the |
| it accounts for one in seven German jobs, | | | | General Motors Corp. as the largest automaker |
| directly and indirectly. Though German | | | | worldwide. Last year, the Japanese automaker |
| carmakers are faring better than their U.S. | | | | had 52 factories in 28 countries, Becker |
| rivals, that's not a helpful comparison," | | | | said. In comparison, Volkswagen produced |
| wrote Catherine Hickley. "The challenge comes | | | | vehicles in 18 countries, mostly in Europe. |
| from Toyota Motor Corp., which is poised to | | | | Additionally, the automaker closed its only |
| overtake General Motors Corp. as the world's | | | | factory in the United States - a move Becker |
| top automaker, and Chinese upstarts like | | | | calls "fatal'' for the entire German industry |
| Chery Automobile Co. and Geely Automobile | | | | in that market. Why? Because Toyota's luxury |
| Holdings Ltd." | | | | division Lexus became the bestselling luxury |
| | | | car there. |
| German cars are too big, too costly and too | | | | |
| polluting, Becker said. And these factors | | | | Brilliance China Automotive Holdings Ltd., |
| contribute to the significant sales doldrums | | | | BMW's venture partner, is challenging |
| afflicting German vehicles. China, meanwhile, | | | | Volkswagen and Adam Opel, GM' German unit, |
| is the battleground that will determine who | | | | with its own Zhonghua brand. German |
| survives, Becker noted. As a fact, the | | | | newspapers have called it the "Mao Mercedes" |
| facilities in the territory already produce | | | | and "Cheap BMW." |
| more cars than those in Germany. | | | | |
| | | | The industry would not collapse overnight, |
| A chapter written by Frank Sieren, the China | | | | Becker said. German carmakers might even |
| bureau chief of magazine WirtschaftsWoche, | | | | avert a crisis. If there is no radical |
| tracks the fall of German automakers from | | | | change, he noted, as many as 400,000 jobs may |
| supremacy in the world's biggest potential | | | | be lost - 100,000 from automakers and the |
| market. China has become "the nightmare of | | | | rest from suppliers. "So Germany needs its |
| every German car executive,'' Sieren said. He | | | | auto industry. But does the world need it |
| envisions that "sooner rather than later'' | | | | too?'' Becker concluded. |