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There's a whole bunch of stuff happening that collectively hurts the German economy: - German economy is heavy on manufacturing: Part of their success was chea
by jcfrei 2y ago
There's a whole bunch of stuff happening that collectively hurts the German economy:
- German economy is heavy on manufacturing: Part of their success was cheap raw materials (oil, gas, etc.) from Russia. That edge has disappeared thanks to the war in Ukraine.
- More competition from China: China is moving up the value chain in manufacturing, competing with Germany in previous strongholds. Lowers margins for lots of German companies.
- At the same time subdued demand from China itself: A large part of growth - esp. in the automotive section - came from China. Domestic manufacturers of EVs have now better offers than Germany, meaning it's losing market share.
- Misguided energy politics: With an unnecessary exit from Nuclear energy (German nuclear power plants were among the most reliable ones). Driving up energy costs just at the moment when gas is already in short supply due to sanctions on Russia.
Will any new Government fix all these issues? Unlikely, they are structurally too deeply a part of the German economic model that a new Gov. could change them (except for restarting Nuclear power plants - but that seems unlikely atm).
- OptionOfT 2y agoThe hardest part to build a car these days is the emissions. Without it, the next thing is safety, but that is an easier solve. I feel that Germany felt like EVs wouldn't take off, and thus ignored them for too long, and they got taken by surprise. For example, the Model 3 Performance on 20" wheels has 303 miles of range, a 0-60 of 2.9 seconds and is about 20k cheaper than the BMW i4 M50 on 20" wheels has 227 miles of range and a 0-60 of 3.7 seconds. Why? Well, the i4 isn't a purpose built EV. It sits on a platform that must incorporate everything, starting at a tiny 1.6 liter 4 banger, a 2 liter 4 banger with electric motor, a 3 liter 6 banger, and a plethora of configurations, manual, automatic, (air)suspension, performance (M3/M4), bodies (station wagon). And on top of that a battery pack beneath everything and electric motors. Look under the hood on a BMW i4. Take the cover off. There is empty space there. It's wasteful. So now I'm looking at our next car. Do I get the Tesla? Or the BMW?
- r00fus 2y agoI mean, you have a lot of choice and the Tesla quality isn't exactly known to be as high as the BMW (Also Tesla real-life range != stated range).