{
  "id": 17172199,
  "title": "It's an uphill road for Germany’s carmakers",
  "url": "https://urgent.news/2026/10/30/its-an-uphill-road-for-germanys-carmakers",
  "topic": "world",
  "section": "World",
  "published": "2026-10-30T03:43:00.000Z",
  "source": {
    "name": "Al Majalla English",
    "slug": "al-majalla-english",
    "url": "https://en.majalla.com/node/333869/business-economy/its-uphill-road-germany%E2%80%99s-carmakers"
  },
  "original_language": "en",
  "account": "Germany's automotive industry finds itself facing an uphill battle in the modern market. Once a symbol of technological leadership and innovation, once revered for its premium vehicles, the country's carmakers now confront a host of challenges. Chinese competition is increasingly fierce, the shift towards electric vehicles (EVs) is dramatically altering the landscape, and high domestic production costs are eroding profitability. The German Association of the Automotive Industry (VDA) reports a sobering picture through October 2026 – passenger car production dropped to 3.03 million vehicles, a 4% decrease year-on-year and a 15% decline from 2019 levels. Moreover, foreign orders for German cars dropped by 16% in September alone. A study by Ernst & Young, analyzing the performance of the world's top 19 automotive groups in the first half of 2026, revealed a worrying trend: German manufacturers' sales in China fell by 25%, while their revenues decreased by 2.9%. German automotive groups reported a further drop in operating profits, down 19% to €13 billion in the first half of 2026, with operating margins narrowing from 5.5% to 4.6%. These figures paint a picture of a struggling industry, grappling with mounting pressures. On October 13, Volkswagen's CEO, Oliver Blume, sounded the alarm on the daunting challenges facing Europe's automotive sector, calling for greater regulatory flexibility and improved manufacturing conditions. Just three days later, France and Germany reached a consensus on a strategy for Europe's automotive future, emphasizing the need to balance climate goals with industrial preservation and competitiveness. Both nations agreed on the importance of reducing emissions while fostering innovation and supporting research and development. However, the path ahead is fraught with difficulties. Exports have declined by 4% to 2.295 million vehicles, and Reuters reported on October 23 an escalation in the dispute between Volkswagen and trade unions over wage agreements, with the company planning to cut 100,000 jobs. High production costs are also a pressing issue. With some factories running at around 60% capacity in 2025, manufacturers require 75-80% capacity for profitable production. This underutilisation has driven up manufacturing costs per vehicle by up to €5,000, twice the figure observed at one of Europe's most efficient production sites. Roland Berger, a German consultancy firm, predicts a decline in the number of auto factories in Germany over the next nine years, with a potential reduction of 15-20 factories. To survive these challenging times, German carmakers must innovate, streamline operations, and adapt to the rapidly changing landscape.",
  "summary": "It's an uphill road for Germany’s carmakers newspress_en Fri, 10/30/2026 - 03:43 Business & Economy Germany’s car industry has long been central to the country’s industrial identity and a hallmark of its engineering excellence. Through auto manufacturers like Volkswagen, Mercedes-Benz, and BMW, Germany catered to the demand for premium vehicles, establishing extensive supplier networks. For…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}