German auto industry must become more productive By dpa-AFX

BERLIN (dpa-AFX) – According to experts, the German auto industry needs to work much more efficiently. “This is the only way it can remain internationally competitive in the medium to long term,” says a recommendation paper from the Transformation of the Automotive Industry (ETA) expert group appointed by the Ministry of Economic Affairs. “It’s really about producing more in the same time and reducing costs,” said Ina Schaefer, who is a professor of software engineering and vehicle information technology at the TU Braunschweig.

According to the recommendations, “radical networking along the entire value chain is necessary”. “In regional clusters and production networks, we can develop together, parts of the value chain can be coordinated and investments can be made together.” Significant production leaps are only possible with a fundamental change.

Batteries or semiconductors should be made in Germany

The car industry in Germany is under pressure. Volkswagen (ETR:), for example, is planning to close several plants. “There is a distribution battle over the future of the automotive industry and its value creation,” says the ETA. Global competition for locations is also intensifying due to extensive government investment and subsidy programs, especially in the USA and China. Against this background, the experts provide further recommendations for the economy as well as German and European politics.

This also includes the development of key areas of the value chain for electric cars – for example batteries or semiconductors. Politicians should not be afraid to attract individual companies through funding. In order to improve conditions for companies, energy costs would also have to be reduced and bureaucracy reduced.