1. Skip to content
  2. Skip to main menu
  3. Skip to more DW sites
Cars and TransportationGermany

Germany's car industry on the brink?

11:01

This browser does not support the video element.

Niels Eixler
October 8, 2025

Germany’s auto industry is in crisis. Chinese EV manufacturers are racing ahead, backed by powerful government support. Can Germany’s legacy carmakers survive on their own? Is it time for a radical shift? What if German automakers pooled their expertise and worked together? Could strategic mergers and global partnerships be the key to survival?

Germany’s car industry is facing a major crisis: profits are falling, competition from China is growing, and the shift to electric vehicles is accelerating. While some suggest mergers between giants like BMW, Mercedes, and Volkswagen, others warn of delays and integration issues. Chinese EV makers like BYD are surging ahead, backed by massive subsidies and superior digital innovation. Partnerships, like VW and Xpeng, may offer a way forward. Can Germany adapt fast enough to stay competitive?

For more on this series, follow this link 

Skip next section DW's Top Story

DW's Top Story

Skip next section More stories from DW