Or to take another topical example, it is glaringly obvious that Net Zero does not favour industrial production and is likely to drive it to less ideologically hamstrung countries.
Automotive industry is increasingly relocating vehicle production abroad
In Germany and other major car countries in Western Europe, vehicle production has been collapsing noticeably for years. Manufacturers are increasingly relocating their production to Eastern Europe. Last year, unit sales in Germany, Spain, Italy and the UK together were more than a quarter below the level of 2019. In Germany, the minus was 16 percent, in Italy and Great Britain even more than 40 percent each. The main reasons for this are high costs, overcapacities at the plants and fiercer international competition. At the same time, pressure is growing due to weak profits, problems in China and the USA and expensive electric cars with low margins. The main consequences are therefore falling production, endangered locations, job losses and a creeping reduction of industrial substance.
The decline often remains a marginal topic in the public, but it affects a core area of German industry. Manufacturers are building fewer vehicles and at the same time relocating parts of production to countries with lower costs. Industry expert Stefan Bratzel said: "Nobody is talking about it loudly, but we have a creeping relocation of production and jobs abroad." In doing so, he describes not only a trend, but a deep structural change.
In Germany and other major car countries in Western Europe, vehicle production has been collapsing noticeably for years. Manufacturers are increasingly relocating their production to Eastern Europe. Last year, unit sales in Germany, Spain, Italy and the UK together were more than a quarter below the level of 2019. In Germany, the minus was 16 percent, in Italy and Great Britain even more than 40 percent each. The main reasons for this are high costs, overcapacities at the plants and fiercer international competition. At the same time, pressure is growing due to weak profits, problems in China and the USA and expensive electric cars with low margins. The main consequences are therefore falling production, endangered locations, job losses and a creeping reduction of industrial substance.
The decline often remains a marginal topic in the public, but it affects a core area of German industry. Manufacturers are building fewer vehicles and at the same time relocating parts of production to countries with lower costs. Industry expert Stefan Bratzel said: "Nobody is talking about it loudly, but we have a creeping relocation of production and jobs abroad." In doing so, he describes not only a trend, but a deep structural change.
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