Germany is known for its auto industry worldwide; many big car-making brands are German. Since ages in But in recent times, this growth in the field of the automobile industry of Germany has come to saturation. This is primarily because of the world now moving towards green and clean energy from conventional fuel use.
The Main Problem
In recent times, alternatives to the fuel are being found out. And the world now is going in the direction of environmentally friendly methods, like electric charging. The automotive industry is now in the race to manufacture electric vehicles. These electric vehicles are now considered the future of the world in terms of resources.
The primary reason behind going towards electric is depleting natural resources like petrol, diesel, etc.; and also the harmful effect which these fuels produce. So, now the danger has started to loom over the German auto industry because of the electrification of the automobiles and there almost no use of fossil fuels to run. As a result, these electric machines are not burning the pockets of its owner while saving the earth’s environment by not emitting harmful gases in the atmosphere.
Impact On The German Auto Industry
The impact of the electrification of automobiles could be catastrophic. If the German industry fails to go hand in hand with present-day innovation and technology. The German auto industry will have to adapt the electrification in the future. Since all other auto manufacturing companies, like Japanese, American, and Italian will be moving towards it.
Impact On The German Economy
There will be a lot of things at stake for the Germans. The entire auto industry, thousands and thousands of jobs, livelihood, etc. If the entire industry shuts down, the workers will be impacted and this will have a direct impact on the economy of Germany. On the other hand, Germany is a developed country, it has many liabilities; to fulfill all of them, the government will have to shell out huge chunks of money. This can also lead to a financial crisis, if not taken care of.
The Road Ahead For Auto Industry
The Germans will have to take the right steps hereafter to save its dooming auto industry and economy. The government should join hands with the private players and think of the right roadmap ahead. On the other hand, saving the industry will have to be a joint project of the government and the industry. Likewise, both will have to analyze the market trend and then act accordingly. The government might have to spend and sanction funds for the industry to revamp the old manufacturing plants. Furthermore, help in assembling the new ones.
At last, we have seen the problem and the impact it could have on the industry as well as on the German economy. Now all eyes are on the Germans. Finally, we will have to see wait and see the steps which the German government takes to save its world-famous auto industry.