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BMW, VW and Daimler: 2021 could be a fateful year for German manufacturers

2020-12-05T12:30:52.389Z


The German automotive industry is facing a tough final quarter because of the extended lockdowns. And 2021 could become a real stress test for the industry.


The German automotive industry is facing a tough final quarter because of the extended lockdowns.

And 2021 could become a real stress test for the industry.

  • The German

    car manufacturers BMW

    *,

    Daimler

    and

    VW

    *

    have to convert their fleets to alternative drives.

    That costs billions.

  • It is precisely in this situation that the industry also has to

    cope with

    the consequences of the

    Corona

    * pandemic.

  • The next year could be a tough

    test

    for the industry

    .

Hanover / Berlin - The impacts are getting closer and closer.

After a brief rebellion in September, the auto business in Europe is still lacking momentum.

In Germany, sales in the current year are likely to be a full 20 percent below the previous year, the industry association

VDA

expects

.

The "sharp decline poses major challenges for manufacturers and suppliers and requires an adjustment in capacities," warned VDA boss

Hildegard Müller

.

The situation will not get any easier in the coming year - on the contrary.

In view of the

Corona

* crisis and the necessary investments in electrification and digitization, the industry is heading for a possibly even tougher year 2021.

An overview of the situation and the challenges.

Auto industry: Thousands of jobs are being cut

A look at personnel development shows how serious the situation is in the industry.

At the end of September, around 804,000 people were still working in the industry, around 30,000 fewer than in the previous year.

Alone at

Continental

are

By 2029 30,000 jobs will be “changed”, relocated or cut back worldwide.

At

VW there

are currently no plans to tighten the ongoing savings for the core brand.

The structures are being radically rebuilt, however, and up to 20,000 jobs are likely to be lost in the coming years.

In the meantime, a software division will be created with more than 10,000 employees in the medium term.

The subsidiary

Audi

* had already decided in 2019 to cut 9,500 jobs.

At the truck manufacturer

MAN,

a dispute is raging over cuts of a similar size.

In the case of

Daimler

, up to 15,000 job cuts had been rumored; there were reports of 30,000.

Numbers are not commented on - the goal is as socially acceptable solutions as possible.

BMW

cuts 6,000 jobs and also waives operational dismissals, in the second quarter of 2020 the Bavarians were in the red for the first time in eleven years.

Since the takeover by the French

PSA

group,

Opel

has

massively cut jobs with severance pay programs.

Car manufacturer: Billions in aid against the crisis

In order to stabilize the situation and to accelerate the change to alternative drives, the federal government is rushing to help the industry.

At the most recent car summit in mid-November, the federal government announced that it would extend the premiums for the purchase of electric and hybrid cars until the end of 2025.

That helps the heavyweights like

BMW

,

Daimler

or

VW

.

But the smaller suppliers also need support.

Federal Minister of Economics

Peter Altmaier

(

CDU

) is planning a program that will accelerate the transition from combustion technology to alternative drives and the use of data in cars from January.

For this purpose, at least two billion euros should flow through 2024.

A future fund into which the federal government intends to pay another billion euros is in preparation.

This is intended to cushion the change in regions with a particularly large number of companies in the industry (“auto clusters”).

E-cars: expansion of the charging network remains an obstacle

However, the expansion of the charging network remains a major stumbling block on the way to the beautiful new car world.

There are currently around 30,000 public charging points.

The VDA is pushing for more.

In order to achieve the goal of one million public charging points by 2030, around 2000 new public charging points per week will be necessary in the future, said VDA boss Müller on Thursday (December 3).

Currently, "200 new charging points are being installed in the public area every week."

Car makers: Manufacturers invest in new models and production

For a long time, the German carmakers were accused of having changed course much too late.

In the meantime, however, manufacturers are working flat out on vehicles with alternative drives. 

  • BMW

    plans to

    sell the

    iX

    luxury SUV from November 2021

    .

    After the

    i3

    , which was considered a pioneer in the small car

    segment

    , the car

    will be

    the third

    all-

    electric

    BMW

    boss

    Oliver Zipse

    sees “a new era”

    alongside the

    iX3

    .

    In addition, almost all manufacturers have new hybrids.

    The US rival

    Tesla

    is now pushing ahead with other, now also cheaper, e-models and is building a

    Gigafactory

    * near Berlin.

  • Daimler

    reported around 45,000 electric and hybrid vehicles sold in the third quarter of 2020.

    The Stuttgart-based company announced that it would strive for “the leading position” in the field of electric drives and vehicle software in the medium term.

    So far, most models are in the higher price segment.

  • VW is

    attacking with the

    ID.3

    in the compact class, where the South Koreans and French have set the tone so far, and plans to launch Stromer in Polo format * in 2023. The expansion of the range of purely electric cars to include the

    ID.4

    ,

    ID.5

    and other models, including at group subsidiaries, is intended to gradually make electric driving

    suitable

    for the

    masses

    . The group will pump 73 billion euros into e-mobility and digital by 2025. By 2030, at least 70 E and 60 hybrid models should be on the market. (dpa / utz)

    * Merkur.de is part of the Ippen Digital editorial network.

Source: merkur

All news articles on 2020-12-05

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