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12/05/2008
However, it is already clear that, in spite of the necessity to act and all the impending changes, Germany, with its solid industrial base and increased competitiveness, is in a better positioned than other countries to weather the storm. And, if it is possible to improve the general framework, the automobile industry can remain part of Germany’s firm manufacturing basis in the future.
We are concerned about developments on the automobile market. Demand for cars in the USA has collapsed; in Japan it is withdrawn and in West Europe it is receding fast. China, India and Russia cannot compensate for the loss, even though their mid and long-term growth will continue. However, the German automobile industry’s excellent position on the world markets offers a chance for manufacturers and suppliers to realise growth potential in the future. It is common knowledge that the German car market has lacked any decisive impulses for some time. Some automobile manufacturers and suppliers have already capped production. A long critical phase will inevitably have a negative effect on the workforce.
We must address four clear themes during these times.
Firstly: the state and the banks must now restore faith and secure the future of the business financing cycle. The finance sector must ensure that industry is granted the necessary credit. Above all, the innovation capacity of middle-sized companies, which form the foundation of the international success of Germany’s automobile industry, must be secured. The KfW, which operates as the development bank for middle-size companies, must take particular responsibility, but some of the private banks should also be prepared to help.
Secondly: a political framework to help stimulate demand for automobiles must be created. A CO2 based tax reform, coherent CO2 regulations throughout Europe and the termination of the climate protection debate would all help to support the industry and promote the purchase of low emission vehicles.
Thirdly: the economy needs mobility and transport. We must all help to create a basis for the future – we need to create a balance between economical and ecological concerns. Industry is doing its share by increasing its efficiency, as well as undertaking research and promoting innovation, while the state invests in the infrastructure and provides a sensible regulative framework.
Fourthly: the real German and European economies can be controlled but must be supported – without any bureaucratic innovation hindering stipulations. We need to caution against increasing the burden of further legislation. This is the only way Germany will be able to strengthen the industrial basis, to secure jobs and to remain the land of the automobile for years to come.
Klaus Bräunig, Managing Director of the VDA – Verband der Automobilindustrie e.V. (United Automobile Industry Alliance)
Using the crisis to your advantage
However, it is already clear that, in spite of the necessity to act and all the impending changes, Germany, with its solid industrial base and increased competitiveness, is in a better positioned than other countries to weather the storm. And, if it is possible to improve the general framework, the automobile industry can remain part of Germany’s firm manufacturing basis in the future.We are concerned about developments on the automobile market. Demand for cars in the USA has collapsed; in Japan it is withdrawn and in West Europe it is receding fast. China, India and Russia cannot compensate for the loss, even though their mid and long-term growth will continue. However, the German automobile industry’s excellent position on the world markets offers a chance for manufacturers and suppliers to realise growth potential in the future. It is common knowledge that the German car market has lacked any decisive impulses for some time. Some automobile manufacturers and suppliers have already capped production. A long critical phase will inevitably have a negative effect on the workforce.
We must address four clear themes during these times.
Firstly: the state and the banks must now restore faith and secure the future of the business financing cycle. The finance sector must ensure that industry is granted the necessary credit. Above all, the innovation capacity of middle-sized companies, which form the foundation of the international success of Germany’s automobile industry, must be secured. The KfW, which operates as the development bank for middle-size companies, must take particular responsibility, but some of the private banks should also be prepared to help.
Secondly: a political framework to help stimulate demand for automobiles must be created. A CO2 based tax reform, coherent CO2 regulations throughout Europe and the termination of the climate protection debate would all help to support the industry and promote the purchase of low emission vehicles.
Thirdly: the economy needs mobility and transport. We must all help to create a basis for the future – we need to create a balance between economical and ecological concerns. Industry is doing its share by increasing its efficiency, as well as undertaking research and promoting innovation, while the state invests in the infrastructure and provides a sensible regulative framework.
Fourthly: the real German and European economies can be controlled but must be supported – without any bureaucratic innovation hindering stipulations. We need to caution against increasing the burden of further legislation. This is the only way Germany will be able to strengthen the industrial basis, to secure jobs and to remain the land of the automobile for years to come.
Klaus Bräunig, Managing Director of the VDA – Verband der Automobilindustrie e.V. (United Automobile Industry Alliance)
