German manufacturers shift towards a cliff and risk taking the whole economy with them. It is a warning given by Helmut Becker former chief economist at Bayerische Motoren Werke AG.
If the auto industry is to believe the warning of the estimate of the economist, Would it time to say goodbye to Porsche AG, Volkswagen AG, Audi AG, DaimlerChrysler AG and other German car manufacturers?
The future belongs to the Japanese automakers, Korean and Chinese, Becker wrote in an article entitled "Ausgebremst: Wie die Autoindustrie Deutschland in Die Krise Faehrt''( "Maneuvered: How the car industry is driving the crisis in Germany'').
Some industry experts said it would be wise to consider warning Becker is supported by statistics and market analysis.
"I turned the final page with astonishment that the industry is still floating that it represents only one in seven German jobs, directly and indirectly. Although car manufacturers German fare better than their U.S. competitors, this is not a useful comparison, "wrote Catherine Hickley. "The challenge comes from Toyota Motor Corp., which is poised to overtake General Motors as a car manufacturer in the world, and Chinese upstarts like Chery Automobile Co. and Geely Automobile Holdings Ltd. "
German cars are too big, too costly and too polluting, "said Becker. And these factors contribute to the significant sales slump afflicting German vehicles. China, meanwhile, is the battle that will determine who survives, Becker noted. In fact, the facilities on the territory already produce more cars than in Germany.
A chapter written by Frank Sieren, bureau chief of China's magazine Wirtschaftswoche, tracks the fall of German manufacturers supremacy in the World's Biggest potential market. China has become "the nightmare of any officer of German automobile,''Sieren said. It provides that "the earlier order possible''Allemands four-door Chinese cars in the chain of discount supermarkets Aldi Group for € 3499 (4780 $). ALDI, short for "Albrecht Discount," is a German-based chain of discount stores - is one of the largest channels of retail throughout the world.
Execs German manufacturers "could not put the blame on external forces. The 63-year-old economist from the makers of quality BMW radiator 3.0C catalogs showed that reflect some of the mistakes and missed opportunities over the decades. The catalogs have specifically stressed, DaimlerChrysler and Volkswagen.
Some factors that contribute to the disappearance German manufacturers are ego-driven, failures and mergers tragically costly, unwise agreements Working on wages and working hours, lack of foresight on the environment as missing on hybrid engines, and a concentration on boy toys wise saturated Western markets instead of competing on small segments of car affordable.
How powerful are Asian automakers? This year, Toyota Motor Corp. surpassed General Motors Corp. as the largest automaker in the world. Last year, the Japanese manufacturer had 52 plants in 28 countries, said Becker. In comparison, Volkswagen produced vehicles in 18 countries, mostly in Europe. In addition, the manufacturer has closed its only plant in the United States - a move Becker calls "fatale''pour German industry of the entire market. Why? Because Toyota the luxury division Lexus has become the luxury car hit there.
Brilliance China Automotive Holdings Ltd., venture partner BMW, Volkswagen is a challenge and Adam Opel, GM's German subsidiary with its own brand Zhonghua. The German newspapers have nicknamed the "Mao Mercedes" and "Cheap BMW."
The industry would not disappear overnight, "said Becker. The German car manufacturers could even prevent a crisis. If no radical change, he noted, no fewer than 400,000 jobs lost in May - 100,000 car manufacturers and the rest from suppliers. "Thus Germany needs its auto industry. But the world does he need too?''Becker said.
About the Author:
Anthony Fontanelle is a 35-year-old automotive buff who grew up in the Windy City. He does freelance work for an automotive magazine when he is not busy customizing cars in his shop.
Article Source: ArticlesBase.com - German Automakers are Heading for a Fall Warns Becker
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