Ongoing Crisis of the Business Location

"For years, the German Association of the Automotive Industry and its member companies have been highlighting—using concrete figures, data, and facts—the poor conditions for business in Germany and Europe compared to the rest of the world. While our warnings have been noted, the consequences have regrettably largely failed to materialize—namely, the necessary change of course.

Anything that fosters growth must be a priority—whether regarding social security contributions, taxes, energy prices, the administrative burden, or labor market flexibility. These areas must continue to be tackled urgently and comprehensively, together with a technology-neutral approach to addressing future challenges.

Reality has overtaken political goals and approaches and is increasingly putting jobs at risk. The crisis affecting the region as a business location is hitting European industry as a whole. The consequences are visible and palpable every day—and are becoming increasingly dramatic. We will not be able to keep all the manufacturing plants belonging to manufacturers and suppliers this way. We should therefore open up these sites to foreign manufacturers as well, for instance. Every site we manage to retain here helps secure jobs.

The realization that only a highly competitive business location holds the key to genuine change in the medium and long term remains crucial. However, this insight is not yet a matter of broad consensus, which is why the necessary conclusions have not been drawn.

Action is now required. The available options for action have become fewer in number, yet all the more necessary. Germany and Europe find themselves in a situation that demands bold decisions. This will also entail significant changes for the people—bringing an end to habits and expectations that, regrettably, our country can in some respects no longer afford.

Comprehensive and far-reaching reforms are necessary to return to growth. Only in this way we can ensure a life of prosperity with ample jobs and functioning social systems—for future generations as well. It is therefore also a matter of intergenerational equity and the social necessity to act.

Automotive companies will have to undertake further reforms and adjustments in light of ongoing and acute challenges regarding their production locations.

They face the task of consistently securing and reshaping their competitiveness and business models. This entails cost discipline—including, regrettably, necessary workforce adjustments—and far-reaching reforms to their business models. These are difficult decisions that must be shaped through dialogue with all stakeholders. They will require a willingness to change from all of us.

Denying the need for action—whether in whole or in part—and refusing to acknowledge the clear factual basis is not an option. It is shortsighted and, given the consequences, socially irresponsible.

The upcoming discussions aim to establish the necessary foundation for companies to continue investing successfully, growing, and creating new jobs in Germany in the future. Only economically strong companies can safeguard prosperity and jobs while opening up genuine future prospects for coming generations. Given the intensifying international competition, there is no realistic alternative to a change of course in Berlin and Brussels. Anyone wishing to remain competitive in the long term must lay the groundwork for tomorrow's success today."