“Made in Germany does not necessarily
apply in the automotive world. 70 percent of German car models are not
manufactured in this country. This gives brands economic benefits, but it is
also associated with various types of risks related to customs tariffs or trade
conflicts.
Germany is the largest European car
market and a country famous for its car production. However, in reality, most
German cars roll off the production lines abroad. According to data from the
German Automotive Industry Association (VDA) and the Federal Statistical
Office, in 2014, over 5.6 million passenger cars were manufactured in Germany.
Ten years later, this number dropped by 27 percent and amounts to 4.1 million
units.
Around 70 percent of all cars
manufactured by German manufacturers, i.e. around 10 million vehicles, rolled
off the production lines outside Germany.
European countries (excluding
Germany) had the largest share in the foreign production of German car brands.
The most important production locations for German cars are:
- Czech Republic – 865 thousand cars
- Spain – 804 thousand cars
- Hungary – 351 thousand cars
With a 32 percent share in total
production, which corresponds to about 4.5 million passenger cars, China
remains by far the largest foreign location for German car manufacturers.
These numbers show how important the
Chinese market is for the German automotive industry. All the more important
and problematic for German brands is the debate on punitive tariffs on electric
cars from China, proposed by the European Union in order to balance unfair
conditions of competition with state subsidies, and what will happen in this
topic now after Donald Trump declared a trade war on China. For now, tariff
rates range from 7.8 to 35.3 percent, depending on the manufacturer.
The tariffs also affect German brands
such as BMW, which manufactures some of its models in China and imports them to
Europe. In the case of BMW, for example, the punitive tariff amounts to 20.7
percent.
Germany produces the largest number of cars in China
The additional costs could affect the competitiveness of
individual models in Europe and lead to higher prices. In addition, there is a
risk that China could take action to make it more difficult to sell German
vehicles on the local market. German
manufacturers have therefore taken legal action against these tariffs.
Incidentally, German manufacturers are of course not the only ones producing
their car models in China.
Germany also manufactures cars in
North America. This amounts to around twelve percent of production, which
corresponds to 1.6 million cars. Of these, 900,000 were sold in the United
States alone.
North America has so far been an attractive location, but
this has also been changing recently.
Volkswagen Group:
- USA (Chattanooga, Tennessee): Volkswagen Atlas, Volkswagen
ID.4 (from 2023)
- China (SAIC-VW and FAW-VW): Passat, Tiguan L, ID.3, ID.4,
ID.6 (models for the Chinese market)
- Mexico (Puebla): Volkswagen Jetta, Volkswagen Taos,
Volkswagen Tiguan
- Slovakia (Bratislava): Volkswagen Touareg, Audi Q7/Q8,
Porsche Cayenne
- Spain (Martorell): Volkswagen T-Cross, Volkswagen Polo
- Hungary (Győr): Audi A3, Q3, RS Q3
- Mexico (San José Chiapa): Audi Q5, SQ5
- China (FAW-VW, SAIC-VW): Audi A4L, A6L, Q5L, e-tron (local
versions)
BMW
- USA (Spartanburg, South Carolina): BMW X3, X4, X5, X6, X7,
XM
- China (BBA – joint venture with Brilliance): BMW 3 Series,
5 Series (extended wheelbase versions), BMW iX3 (EV)
- Mexico (San Luis Potosí): BMW 3 Series (sedan for the
North American market), BMW 2 Series Coupé
- Austria (Graz – Magna Steyr): BMW Z4 (Toyota Supra is
produced on the same line)
Mercedes
- USA (Tuscaloosa, Alabama): Mercedes GLE, GLS, EQE SUV, EQS
SUV
- China (BBAC – joint venture with BAIC): Mercedes E-Class
(extended wheelbase version), C-Class, EQE, EQB
- Austria (Graz – Magna Steyr): Mercedes G-Class
- Mexico (Aguascalientes – with Nissan): Mercedes A-Class
Sedan (versions for the US market)
Mercedes produces large SUVs in the US”
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