German automotive industry
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VW, Mercedes, and BMW in the Face of Donald Trump—A Tightrope Walk Between Investing in the U.S., Maintaining Operations in Europe, and Catching Up in Electric Mobility
The German automotive industry faces a threefold challenge: competition from China; a difficult transition to electric vehicles; and US tariffs.
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Are Germany’s economic, industrial, and political struggles becoming a liability for the EU’s ability to rise to the geopolitical moment?
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The state election in Baden-Wuerttemberg in March 2026 will be the first major test of public opinion for Chancellor Friedrich Merz's federal government. At the same time, Baden-Wuerttemberg is one of the federal states that—as an important location for the German automotive industry and its suppliers—is particularly affected by the transformation policy driven by climate change and the international conflict constellation.
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