German carmaker
Car industry is mainly investing abroad
Does the local industry go off? The industry has been warning for a long time. Now there are concrete numbers.
According to data from the Association of the Automotive Industry (VDA), the German auto industry has invested more money in other countries than in Germany since 2022. At that time, the ratio for total expenditure of a good 89 billion euros was 51 to 49 percent in favor of abroad. A year later, the proportion of foreign investments was 53 percent, the total expenditure was 99 billion euros in 2023. Newer data is not available. The “Frankfurter Allgemeine Zeitung” had previously reported.
“By 2021, a narrow majority of entire investments were flowed to Germany, but since then it has turned in favor of abroad,” said VDA chief economist Manuel Kallwei. “The reason for this includes the poor location conditions: high energy prices and high bureaucracy costs.” According to the data, the German investment share was still 55 percent, 2021 it was 52 percent. The car industry has long criticized the conditions in Germany and warns of migrating the industry.
VDA: It is necessary to take care of the location
Development in factual investments – for example in factories, is particularly clear. In 2012 the ratio was almost balanced (51 percent abroad, 49 percent domestic). In 2023, the proportion of foreign investments was 62 percent. Only 38 percent flowed into the German location.
There is a similar trend in investments for research and development. In 2008 the German car manufacturers still invested 70 percent domestically, 15 years later it was only 53 percent. The basis of the data is the business reports of companies, figures from the Federal Statistical Office, the EU Commission and the Stifter Association for German Science.
“It is imperative to take care of the location of Germany so that car production and thus growth and jobs remain in Germany,” said Kallweit. “There is temptation to shift the development because of the costs. Basically, the following applies: Development work is easier and better if it takes place at the location of production.”
dpa
Source: Stern
