The Coming EU Recession into 2028, Mercedes BENZ $MBG Triple TopThe principal pillar of the European economy is Germany, recognized as its wealthiest nation.
A parallel can be drawn to the adage regarding America: when it experiences a minor setback, the global economy often faces significant repercussions.
It is often asserted that the essence of "Deutschland" is deeply rooted in its automotive industry, leading to its moniker as "Autoland." German automobiles have consistently been esteemed as the finest globally.
In fact, the most thriving economic engine in Europe has been heavily dependent on the automotive sector, and the initiatives aimed at addressing climate change have been likened to the act of vanquishing a vampire—driving a stake through its heart.
Volkswagen, the biggest car maker in Europe, is warning that it might have to cut thousands of jobs and close some factories in Germany. This is happening because they are having tough talks with unions about rising costs.
The push for climate-friendly cars has really affected how many people want to buy new vehicles, and they are also facing strong competition in the electric car market. The news about job cuts and possible factory shutdowns is causing a big stir around the world.
Other car companies like Mercedes Benz, BMW, and Ford are also making cuts and letting employees go. Volkswagen is planning to lay off tens of thousands of workers and is even thinking about closing some factories, which is a big deal. Bosch, the largest auto parts supplier in the world and a major employer in Germany, is also cutting hours and pay for around 10,000 workers. Even Meyer Werft, a shipbuilding company that has been around since the 1800s, recently needed a huge bailout of $423 million to stay out of bankruptcy.
The economic strategies implemented by Brussels have significantly weakened the overall economy of the European Union. Germany has remained committed to the traditional Mercantile economic model, maintaining elevated tax rates to curb inflation while producing goods for export to generate profits.
In 2023, the automotive sector is projected to represent as much as 17% of Germany's exports. This sector has created over 750,000 jobs. However, German manufacturing has struggled to achieve a full recovery since the COVID-19 pandemic in 2020, currently reaching only about 90% of its pre-pandemic output.
