Position Paper 1

Germany's Crisis Against...Cars?

Back in 2008, American Automakers, specifically Ford, Chevrolet, and General Motors Company, were at an all time low. So bad, in fact, that these companies sent several executives to Washington to try and receive some form of a bailout. They were so desperate that they sent them all in corporate jets. Now, it's Germany's turn to feel the same way...

The total amount of vehicles being produced by German assembly lines has dropped off significantly (12%), as well as vehicle exports dropping by, nearly, 14%. According to an article published by Chris Bryant for the Charleston Gazette-Mail, two of the main reasons for this decline are trade wars becoming more intense and vehicles sales in China plummeting to rock bottom. In the first part of 2019, European auto sales dropped by 3%, causing many German-based automotive companies to seriously consider layoffs or cutting hours and pay. 

The most ironic part of it all? Germany is responsible for vehicles being as well-made and intricate as they are, seeing as how they invented the internal-combustion engine. Nevertheless, September's Frankfurt Motor Show had one intended purpose, as it usually does. It was meant to show off Germany's might in the automotive industry, as well to show off plans for future developments within the companies. 

Instead, most international car-makers decided it best to stay away from the event this year ,with several claiming they would "rather save the money" than show up. Karl-Thomas Neumann, the ex-boss of Opel/Vauxhall, a British car manufacturer company, stated that the whole event was a failure. To add insult to injury, Daimler AG’s Mercedes, BMW AG and Volkswagen AG were upstaged by climate protesters, who accused them of not doing enough to end their addiction to diesel and gasoline engines.

Things had already got off to an ugly start. On the eve of the show, four pedestrians were struck and killed by a sport utility vehicle in Berlin, prompting a fierce debate about the “social utility” of these gas-guzzling, tank-like cars. Featuring a picture of a Porsche SUV on its cover this week, Der Spiegal magazine declared them a “new object of hate.”

According to Chris Bryant's article, "The German car industry provides more than 800,000 jobs in the country and it accounts for a big chunk of its manufacturing production and exports. Past governments fought hard to protect their industry crown jewel from troublesome regulations. That’s no longer always the case.

First, the Volkswagen diesel emissions scandal made it unwise for politicians to go easy on companies that put profits above public health. And second, Germans have become alarmed by climate change and the industry’s role in that. The average emissions of new vehicles sold climbed for the second year in a row last year, in part because of SUV sales. That’s one reason why Germany is set to miss its 2020 carbon pollution reduction targets. Passenger cars account for about 11% of its greenhouse gas emissions.

Stringent European Union emission targets, and massive fines for noncompliance, have been put in place already. A German federal government led by the Greens (not unimaginable, given the party’s poll surge) would be tougher still. After the deadly accident in Berlin, there were calls to ban SUVs from cities.

The average age of a new car buyer in Germany has climbed to 53, suggesting that the industry may be looking at a difficult future. Yet claims that Germans have fallen out of love with the automobile feel overblown. They still bought about 3.4 million new vehicles last year, pretty decent by historic standards. About 95% of them had a combustion engine. More than one-quarter were SUVs. Nor does the government have any desire to kill its golden goose." 

With this contradiction between the public’s anxiety about climate change and its fondness for big vehicles, it’s not surprising that the government and car-makers are struggling to keep everyone happy. Riding a bike and car-sharing have become a genuine alternative in cities such as Berlin. But for those who still feel they need a car, electric vehicles tend to be more expensive and their driving range can be limited (for now, at least). The climate package the German government is due to announce on Friday will doubtless try to address this by including more incentives for electric vehicles and infrastructure.

One particular thing that many German auto-makers have done recently to help with the growing hatred for vehicles is to appoint brand new bosses, with the hope being they are able to either help the public eye see that the vehicles, themselves, are not the problem, or to try and change anything they can to ease the public view of them. Volkswagen has decided to try their hand at battery-powered cars, while BMW is pursuing an interest in hydrogen fuel sales.