Volkswagen, BMW and Mercedes will “cease to be what they are”

The deadline is 2030. A renowned economist warns: “They will probably not exist in their current form at the end of this decade”.

A automotive industry already Germany, once unquestionable and apparently unbeatable leader, is going through a delicate situation, probably unprecedented on this scale.

A Volkswagen, the largest German company in the sector and one of the largest in the world, has already had factories closed in the country, in addition to more layoffs in sight.

Volkswagen e Porsche, together, they accumulate a prejudice of 1,000 million euros, according to the most recent reports; just last week, the Mercedes announced a is left over 50% on profits.

The German car industry faces the consequences of great transformations and your own deficiencies.

Germany is showing difficulties in the transition from an industrial power to a society of digital innovation.

The German economy has stagnated, Trump tariffs are not helping and significantly cheaper electric cars have started to appear from China. And the manipulation of tests greatly damaged the image of German car manufacturers.

And, focusing on the automotive sector, Moritz Schularick warns that Germany’s three main car manufacturers – Volkswagen, BMW and Mercedes – they will not continue to be as they are.

Moritz is a renowned economist and president of the Kiel Institute for World Economics.

Last Sunday, on , he was asked whether the three large companies mentioned would still exist in their current form in 10 years’ time.

The answer was direct: “I believe that probably will not exist in their current form until the end of the decadegiven the current state of the German automotive industry.”

“I can very well imagine a kind of Volvo solutioni.e. a strategic investor for German car manufacturers” – could be a Chinese investor bringing technologies and opening access to new marketshe explained.

Moritz Schularick also spoke about the autonomous driving – apparently despised in Germany – stressing that he is “very concerned about the fact that, throughout this debate facing the pastwe are forgetting what the next revolution will be; consequently, we will be left behind again.”