The German automotive industry is in crisis and is weakening in the once lucrative Chinese market. Former VW boss Herbert Diess still sees opportunities – and appeals to his own strengths.
Former VW boss Herbert Diess does not believe the German auto industry is lost despite its current crisis. The industry is strong in the premium segment because there is a strong domestic market including advantageous company car taxation, the German highways and the entire cluster around manufacturers and suppliers, said Diess on the ZDF program “Markus Lanz”. Something similar must now be achieved with expensive electric cars.
The global lead market for e-mobility will be China, also because of its size, said Diess. That has to be acknowledged. However, the topic of premium vehicles is open in the “new world” of the automotive industry with its fleet limits. “We need a strong domestic market for electric vehicles in the premium segment,” said Diess. Germany must become the main market for expensive electric cars. “This has to be successful with fast charging and cheap electricity,” said the former CEO with a view to politics. “And then we can rule the world again.”
Germany still has a strong position in China, while competition there is also tough for other foreign manufacturers. Now the German car industry must show that it produces “the best electric cars in the world,” said Diess. “And then they have to be successful in the home market too. We can’t sell anything out there where the German customer says, ‘I don’t want to.’
Diess was at the top of the VW Group until August 2022. He recently gave his successor Oliver Blume support for the new austerity measures. Volkswagen no longer excludes redundancies and plant closures for operational reasons. Other manufacturers such as Mercedes-Benz and BMW are also struggling and have had to lower their forecasts, while German auto suppliers are struggling with the transition to electric mobility.
Source: Stern
