Investor Warns of Grim Future for German Auto Industry Amidst Growing Challenges

The German automotive industry is facing a severe crisis, with investor Carsten Maschmeyer issuing a bleak forecast for major companies like Volkswagen. Maschmeyer, noted from the TV show 'Die Höhle der Löwen,' describes the industry’s traditional business model as obsolete in an interview with the Neue Osnabrücker Zeitung. He highlights that the shift of mass production to countries such as China, where costs are lower and labor hours longer, has undermined Germany's industrial manufacturing base.

Maschmeyer points out that German automakers have been slow to adapt to key global shifts like electric mobility and autonomous driving technologies, falling behind international competitors. This lag, combined with declining sales, cost-cutting measures, and layoffs, has intensified pressure on firms including Volkswagen. The costly transition to electric vehicles poses additional challenges as traditional revenue streams diminish.

The investor underscores an urgent need for a fundamental change in mindset, urging a move away from relying solely on industrial mass production for economic prosperity. He criticizes the presence of "zombie companies" — businesses that lack competitiveness and innovation — signaling a systemic issue within the sector.

This pessimistic outlook comes at a critical time when the German auto industry must successfully navigate transformative technological advancements and escalating global competition. Maschmeyer’s loss of faith reflects the seriousness of these structural difficulties and raises important questions about the future resilience and evolution of Germany's automotive sector.