A crossroads for Germany’s auto industry
Germany’s auto sector stands at a crossroads as policymakers debate the pace of the EV transition and manufacturers rethink their product portfolios. After years of pushing an Electric-Only narrative, the industry has publicly embraced a strategy of technology openness: letting multiple powertrains coexist on a single platform, sharing components, and delaying the singular race to battery-electric vehicles. Critics call this a dangerous digression from a clear path to decarbonization.
What the critics say
Ferdinand Dudenhöffer, often labeled the “autopapst”, argues in a Focus.de piece that the shift toward technology openness risks pulling German giants back into the old world of combustion engines. He and co-author Haonan Zhu say that once European automakers prided themselves on an ‘electric only’ tempo to compete with China. Now, according to them, the industry is retreating from this chosen path and letting cost impulses dictate R&D choices.
The cost of a dual-track strategy
Investments are staggering: new powertrains, fresh platforms, and tighter emissions standards require multibillion-euro outlays, even as sales stagnate. The core argument is simple: if you chase both combustion and electric technologies, you pay twice for engineering, supply chains, and regulatory compliance. Dudenhöffer notes that the United States faces less pressure to simultaneously reach higher fuel efficiency; in Europe, cleaner engines still bite deeply into margins.
Why pricing pressure matters
The price war from China adds another layer. Chinese brands such as MG, Roewe, Changan, and Chery have reached European standards in quality and feature-set but at substantially lower prices. Chery’s status as a top exporter in 2024 underscored that European price discipline is under threat. Dudenhöffer foresees a gradual price convergence, with Chinese manufacturers offering petrol models as well, intensifying competition beyond the EV segment.
The risk to Germany’s suppliers and jobs
The roadmap is not just about cars; it’s about suppliers and regional employment. A protracted dual-track strategy could erode the profitability of component makers, who must adapt to a shifting mix of engines and powertrains. Some observers warn that the CAR-Institut’s director sees a future where these costs depress investment returns and challenge the financial foundations of the German automotive ecosystem.
Policy choices and the way forward
Proponents of technology openness argue it preserves flexibility and accelerates invention, but opponents warn of drift and higher risk if the industry loses sight of a clear electrification trajectory. Policymakers face a difficult balance: sustain the domestic supplier base while maintaining competitiveness against cheaper, globally sourced vehicles. The goal should be a credible, product- and market-driven transition that caps the costs of renewables, charging networks, and compliance, while preserving Germany’s engineering excellence.
Conclusion
In the end, the debate centers on a simple question: can Germany achieve a faster, cheaper, and cleaner mobility future by embracing technology openness? If the answer remains uncertain, the risk is real that the country’s prized auto industry could stumble at the very moment when the broader world accelerates away with a carbon-light, battery-powered era.
