Foundry   Industry  

Automotive industry - What is actually going on in Germany?

The news of bankruptcies in the German foundry industry are accumulating in recent weeks. For us at Foundry-Planet, a rather unpleasant topic to report about. So, what is going on?

Unfortunate decisions in management, wrong products, inaccurate analyzes, these have always been factors, but typically it's just labeled a market adjustment. While that's bad enough, as bankruptcy always affects a group of people, a region. And yet everything seems different at the moment. It is the OEMs, such as Volkswagen, who announce their plan to stop producing combustion engines within a relatively short time. Major suppliers such as Bosch, ZF, Continental, Schaeffler or Mahle react quickly and announce grim forecasts and question many jobs, including their suppliers.

Normal crises could be managed, but at the moment everything seems different

In the last big crisis more than a decade ago, there were measures that prevented the worst: reduced hours, part-time workers, reset overtime, temporary shutdowns. These are policies made for the normal crisis. But what is happening in the past months in the automotive industry is not a normal crisis. This time, it's about a change - one the auto industry has not experienced, because much of what is produced will no longer be needed. Engine blocks, cylinder heads, diesel injection systems, pistons, and so much more will not be needed in a few years' time, because it's of a choice being made solely by politicians and auto producers.

Germany, the land of the internal combustion engine, is destroying one of its economic foundations without a care, and taking a large number of well-paid and highly-regarded jobs in the industry with it.

If the politically-desired trend towards e-mobility is now manifesting, one can look forward to Chancellor Merkel's summit meeting scheduled for the beginning of November and expect this will mean a break for German industry to an unprecedented extent and pose an existential threat to parts of the foundry industry. In addition, other well-known and unfortunate economic factors do not make the situation easier.

But could it be different if the German industry - with their associations, unions and employees - showed solidarity and made the power in politics and the automotive industry unmistakably clear that such changes are socially incompatible, and plans for the medium term should be better thought out so that affected companies can adapt.

This also applies to nuclear energy and carbon emissions, as well as energy and climate policy. The foundry industry must now urgently face the challenges, adapt, show and draw the much-needed publicity to the realities of the proposed changes.

Forecast: Even in 2030, 80% combustion engines in new vehicles
Of course, analyst forecasts predict that even by 2030, 50% of all vehicles produced will still have a combustion engine and a further 30% will be built with hybrid drive. Alternative drives and innovative product fields pffer opportunites for the foundry industry.

Changes are unstoppable and make sense for climate protection, but it must not be that a whole industry that provides high-quality products and solutions is irrepairably damaged by a mixture of ideological climate hysteria, obvious fraud in the diesel environment, ubiquitous consumer insecurity, weak managers and despondent politicians.

So whose job is it to tell consumers that they can continue to buy diesel vehicles in the future?
We demand of politics: Tell people that there will be changes, but also tell them that they can buy diesel vehicles tomorrow as well, because they are still the best technology we have! 

Fear is  always a bad companion, so we wish the Germans and the European foundries the confidence to face the challenges with solidarity, and to communicate their interests well with customers, consumers and politics.

News No: 7078
Date: 2019/10/31 - 18:31
News Source: Foundry Planet

Automotive  industry  Germany  foundry  European 


Leave a Comment:


HEPCO to manufacture equipment, machinery for mining companies

Heavy Equipment Production Company (HEPCO) has signed memorandums of understanding (MOUs) with five major domestic mining companies to manufacture equipment and machinery for them.

Industrial parks attract $2.1b of foreign investment

Latest data released by Iran’s Industry, Mining, and Trade Ministry show that the country’s industrial parks managed to attract 231 investors with a total $2.1 billion of investment in the previous Iranian calendar year (ended on March 19).

Mining companies' sales through stock market up 55% in 2 months

The total sales of large mining companies through the stock market has increased by 55 percent in the first two months of the current Iranian calendar year (March 20-May 20), year on year, Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) announced.

Iran moving away from exporting raw minerals to create more added value

Deputy Iranian Industry, Mining, and Trade Minister Darioush Esmaieli says over 90 million tons of iron ore was produced in the country during the previous Iranian calendar year of which only seven percent was exported.

Industry, mining, trade projects worth over $5.4b inaugurated in 2 months

Some 196 industrial, mining and trade projects worth 230 trillion rials (about $5.48b) went operational throughout the country since the beginning of the current Iranian calendar year (March 20) up to June 16.

six-high cold-finishing mill for copper ordered from danieli

To be installed in Yuncheng, Shanxi Province, the new six-high cold-finishing mill for Northern Copper Industry Co., Ltd. will competitively roll a wide product mix of copper alloys, from soft pure copper up to hard bronze alloy.
Upcoming Events
 Mines & Metals

Mine & Business Today

 Scrap & Recycling


Our partners