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From cars to tanks
2026/45 | Economy | The crisis in the German automobile industry cannot be solved with arms production. The German automobile industry is suffering from competitive pressure from China and the consequences
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An efficient overall package: Mercedes-Benz wants to develop military vehicles for drone defense
An efficient overall package: Mercedes-Benz wants to develop military vehicles for drone defense
The German car industry has stuck with the combustion engine for far too long. The government continues to support this to this day, which also undermines planning security for manufacturers willing to change. This is now taking revenge.
China is the largest car market in the world and also the most important market for electric cars. There, German manufacturers are losing more and more ground to domestic manufacturers like BYD. Added to this are the Chinese export offensive, which is causing significant sales problems for the Germans in Europe, and the USA's 15 percent tariffs on European cars, which US President Donald Trump already wanted to increase to 25 percent. Last but not least, wars, especially those in the Middle East, which cause fuel prices to rise drastically, contribute to making combustion engines even less attractive.
Rights-based global trade, on which many German and other European politicians still rely, is passé and has largely been replaced by strategic geoeconomics.
Rights-based global trade, on which many German and other European politicians still rely, is passé and has largely been replaced by strategic geoeconomics.
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