Why car production on German soil has lost 20% of its volume in three years?
- The car production in Germany lost 20% of its volume in three years, between 2016 and 2019, from 5.75 million passenger cars in 2016 to 4.66 million in 2019, representing a loss of 1.09 million units over this period. The decrease reached -9.0% in 2019, after a decrease of -9.3% in 2018 and -1.8% in 2017.
- According to Inovev, this volume decline is the consequences of several factors:
1. Lower global sales in 2018 and 2019, which has caused a decline of exports from Germany. These exports went from 4.38 million units in 2017 to 3.48 million in 2019, representing a loss of 900,000 units in three years.
2. The complete or partial transfer of certain models to foreign countries: Mercedes Class A to Hungary, Mercedes Class C to the USA, Audi Q5 to Mexico, BMW 3 Series to Mexico, BMW X1 to Netherlands, Porsche Cayenne to Slovakia, Opel Corsa to Spain. Later than France, Germany decided to transfer some of its models to foreign countries, either for cost price reasons (Slovakia, Spain, Mexico) or for get closer to targeted markets and to through their local constraints (USA, China ) or simply because of under capacity in Germany.
3. The end of production of certain models made only in Germany: Opel Adam, Opel Zafira, Ford C-Max.
- At the end, car production in Germany reached in 2019 its lower level since 2009, which was the worst figure following the financial and economic crisis of 2008.
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