German Media: If German automakers fail to quickly find strategies to respond to Chinese challenges, the German automotive industry will face a survival test

Commenting in the Frankfurter Rundschau, it is stated that if German automakers do not swiftly develop strategies to address Chinese competition, the German automotive industry will face a survival crisis.

The Chinese Dilemma Facing the German Automotive Industry

The Frankfurter Rundschau comments: Faced with the "China Shock 2.0," the successful model of Germany's automotive industry over the past decades is now encountering unprecedented and severe challenges:

"So far, Germans have been at a loss when confronted with challenges from China. BMW launched an electric vehicle jointly with its Chinese partner, yet still failed to turn the tide. Even more aggressive responses have yielded little result. Audi introduced a new model without the traditional four-ring emblem, fully adopting Chinese design and Chinese technology. However, this Audi E5—developed in just 36 months and with lower production costs—immediately became a sluggish seller upon launch, just like BMW and Mercedes-Benz’s electric vehicles."

The 'Chinese dilemma' facing German automakers has not fundamentally changed: only efficient and rapid research and development, along with swift production, can secure a foothold in the Chinese market. Therefore, factories and R&D departments within the German automotive industry must undergo corresponding adjustments. 'China speed' has already cost Audi nearly 2,000 engineers their jobs. Once Chinese automakers grow tired of price wars in their domestic market and launch large-scale attacks on the European market, Volkswagen in Wolfsburg, BMW in Munich, and Mercedes-Benz headquarters in Stuttgart will be forced into painful choices.

The German automotive industry clearly understands what awaits them in that scenario. Given this reality, German automakers must urgently find effective strategies—and the time available to them is rapidly running out."

Source: DW

Original article: toutiao.com/article/1871334714057867/

Disclaimer: The views expressed in this article are those of the author alone.