Germany's auto industry at crossroads

Is the way forward to be powered by batteries or alternative fuels? Whatever the decision, huge job losses and transformation are in the offing for this key driver of the country's economic success.

A Volkswagen production line in Dresden, Germany. Producing an electric engine requires fewer parts, so companies supplying components to auto manufacturers might be harder hit by the country's shift to electric mobility. PHOTO: REUTERS
A Volkswagen production line in Dresden, Germany. Producing an electric engine requires fewer parts, so companies supplying components to auto manufacturers might be harder hit by the country's shift to electric mobility. PHOTO: REUTERS
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Germany's automotive sector, part of the economic backbone of the country, is facing nothing less than a fundamental transformation.

With the country moving away from fossil fuels, car companies including BMW, Daimler and Volkswagen have to decide where the future of their industry lies.

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A version of this article appeared in the print edition of The Straits Times on December 20, 2019, with the headline Germany's auto industry at crossroads. Subscribe