this post was submitted on 06 Sep 2024
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  • Germany’s car industry was once recognized around the world for its high-quality, innovative internal combustion engine cars. But things have changed since then.
  • The industry is facing a range of issues, from regulation to macroeconomics, China and EVs.
  • Issues in the automotive sector may also have spill over effects onto the wider German economy, which has been struggling for some time now.
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[–] [email protected] 36 points 1 week ago (3 children)

Stop innovating and you die. Nothing to see here.

[–] [email protected] 66 points 1 week ago (1 children)

The last innovation I heard about from BMW was subscription based heated seats.

[–] [email protected] 20 points 1 week ago (1 children)

I heard the steering wheel is also subscription

[–] [email protected] 29 points 1 week ago (1 children)

They tried making subscription turn signals but nobody bought them. /s

[–] [email protected] 4 points 1 week ago
[–] [email protected] 22 points 1 week ago (4 children)

I don't even think it's a question of innovation, more just perceived reliability. A large part of the reason Mercedes and other German brands were considered high quality was that they were more reliable than a lot of other brands on the market, while being good to drive. That isn't really the case anymore, and Toyota and Honda have that basically cornered that market to the point that it's an outlier to fine one that isn't reliable.

[–] [email protected] 19 points 1 week ago (1 children)

A large part of the reason Mercedes and other German brands were considered high quality was that they were more reliable than a lot of other brands on the market, while being good to drive.

"Good to drive" is a bit of an understatement. German cars have enjoyed car enthusiasts' favor for decades, despite often mediocre reliability, specifically because they were great to drive. There are multiple dimensions to that, ranging from the safety advantage (and fun) afforded by giving the driver a good feel for what's going on between the tires and the road surface, to an excellent balance of responsiveness and comfort from well-designed suspension. VW even ran an ad campaign around it: Fahrvergnügen

Japanese and American cars generally could not compete in this area.

However, those same German cars also became famous for developing endless little problems over the course of ownership, from annoying rattles to failing parts that were either expensive to buy or difficult to reach (and therefore expensive to replace).

If there was a time when German cars were known for above average reliability, I think it must have preceded the more recent generations. Maybe back before Japan had started investing in this area?

[–] [email protected] 5 points 1 week ago

Sounds about right. Most of the Japanese manufacturers have had to put a higher amount of effort on reliability, in large part due to Toyota's amazingly strenuous testing of reliability before they even consider dropping a new product on the market. As a bit of a bonus to that, once reliability was upped, making more sporty cars could be achieved because you had the budget to change around the driving dynamics of a car without making it inherently unreliable. The Miata is probably the best example of this, as while each generations drivetrain usually isn't too special (outside of being high revving), it manages to handle well and be reliable while doing so.

[–] [email protected] 18 points 1 week ago

Yeah - I never would buy a German car again in my life. Had a VW Jetta that died at only 130k miles. I’ve watched friends with BMWs get stuck with $4k repair bills with only 40k miles. The only reason they sell these days is because of this perception that they’re “luxurious.”

[–] [email protected] 9 points 1 week ago (2 children)

Mercedes and BMW were never known for reliability. They were known for combining luxury and a great driving experience, which couldn't be had from any other car company, even Porsche (which was only about driving not luxury until recently) or Cadillac (only luxury and not driving until recently). German engineering has been famous for poor reliability since at least the early 80s.

[–] [email protected] 6 points 1 week ago

That sounds about right. I’m 30+ and I’ve only ever known BMW and Mercedes as unreliable rich people cars. I’m from a lower income town where most people drive more sensible compact Japanese cars. Also American models, but those were always considered less desirable long term. These days you do see a lot of shitty large pick up trucks from the more “affluent families” sadly.

[–] [email protected] -3 points 1 week ago (1 children)

You have no understanding of any market outside your own little bubble, and looking at your past comments really enjoy speaking from that vast void of Dunning-Kruger. It’s really pathetic.

[–] [email protected] 1 points 1 week ago

What are you going on about? What specifically about my post makes you think I have no understanding of the German car market? I mean, I've only owned multiple BMWs, a Mercedes, and an Audi. I've driven Porsches on the racetrack and VWs on the autobahn. My parents and friends' parents had BMWs and Mercedes when I was a kid. I'm definitely no expert on the overall car market or even the German car market, but I've been a car enthusiast since I was a kid in the early 80s and have a decent understanding of the basics.

[–] [email protected] 7 points 1 week ago

As a (multiple) Toyota owner for 25 years, I can attest to their quality, nothing has ever… ever, failed on me, and I still see my old 2003 Corolla on the road (friend)

[–] [email protected] 17 points 1 week ago

No, it's stop innovating, build a monopoly, never change. The automotive industry (in Germany and the US) is just blue collar wall st. : too big to fail.

Stop talking "free markets" when the competition is taxed at 40%

[–] [email protected] 29 points 1 week ago (1 children)

Maybe selling parts of your car as subscriptions isn't a good idea. I've only read that Mercedes and BMW are doing it.

[–] [email protected] 6 points 1 week ago (2 children)
[–] [email protected] 7 points 1 week ago (1 children)
[–] [email protected] 6 points 1 week ago

Toyota is also doing this??? I hope they sink completely too

[–] [email protected] 25 points 1 week ago

They're merely raking in slightly less massive profits compared to last year. They could probably make up for it by simply not paying out massive bonuses for higher ups, but we all know they'll cut jobs instead unless they get that sweet tax payer money. Greedy scumbags.

[–] [email protected] 20 points 1 week ago* (last edited 1 week ago) (1 children)

Living in LA, you'd think BMW was doing great. There's an obnoxious asshole in one, endangering the lives of everyone around, everywhere you go!

[–] [email protected] 3 points 1 week ago (2 children)

In Switzerland, Audi is the rich arsehole car. Where I live, they tend to have Geneva plates

[–] [email protected] 9 points 1 week ago (1 children)

I see rich arsehole cars daily. Audi, Lamborghin, Ferarri, Bentley, Rolls Royce, Porche, etc. But 9 times out of 10, when I roll my eyes about someone driving like a piece of shit, or annoyed by their obnoxious exhaust, it's a BMW

[–] [email protected] 2 points 1 week ago (1 children)

Ah I get what you mean. But by arsehole I mean speeding tailing and cutting people off.

Here BMW is more the drug dealer car lol.

[–] [email protected] 1 points 1 week ago

And the dealers don't want to get caught because of a stupid road infraction so they drive chill haha.

[–] [email protected] 1 points 1 week ago

That's also the case here in the Netherlands though BMW is still up there as an asshole car. Surprisingly, I have a hunch that the next one to join this club is going to be Volvo around here, they're €€€ and I keep seeing them behaving just like the BMWs/Audi's.

[–] [email protected] 19 points 1 week ago

These German carmakers can buy a monthly subscription to me giving a fuck.

[–] [email protected] 14 points 1 week ago* (last edited 1 week ago) (2 children)

So, to condense the article:

German car industry says:

We are having a tough time! We're thinking of closing our German factories, and ending our "We don't fire people" Guarantee!

Politicians, please save us by regulating our competitors and exempting us from sales tax on new technologies!

Why?

Because our primary source of money before, was selling in China (40% to 50% of earnings), and now Chinese EVs have taken over both China and the local market! So, with our ~~shitty~~ expensive EVs, we can't compete, and, worst of all, China is buying less from us, so we are losing all that money!

Opinion:

German car industry means:

We kept selling to the most vulnerable market and pocketing innovation money, and now we got out-innovated and that market is no longer vulnerable!

Please give us tax-money and regulate our competitors away, otherwise we will make a political stink, and throw workers on the street!

[–] [email protected] 7 points 1 week ago (3 children)

...with our expensive EVs...

They can't compete on price primarily.

[–] [email protected] 6 points 1 week ago (1 children)

They wanted to keep the juicy margins of SUVs whilst being forced (whist bitching and moaning all the way) to transition to EV technology, so ended up pushing EV SUVs.

Their EVs are expensive mainly because of them targeting higher market segments instead of making an "EV for the people", all the while that was exactly what most Chinese car-makers were aiming for.

[–] [email protected] 1 points 1 week ago

Many of their union contracts had per-car metrics. SUVs count as one car but has higher margins.

[–] [email protected] 2 points 1 week ago

German cars never completed on price at all. They compete on quality. They can compete on quality again.

[–] [email protected] 1 points 1 week ago

Sure, no objections there

[–] [email protected] 5 points 1 week ago

Won't somebody please think about the car manufacturers?!?

[–] [email protected] 10 points 1 week ago

Did not read the article, but when you sell cars that have full functionality but put the actual functions behind a paywall, this is what I'd expect.

[–] [email protected] 6 points 1 week ago (1 children)

Compete on quality, not price.

[–] [email protected] 2 points 1 week ago* (last edited 6 days ago) (1 children)

I don't think the German car industry has ever competed solely on price. Outside Germany and some European countries, German brands are luxury items. In Germany, they oscillate between bread-and-butter and above-average.

The problem is value-for-money and market fit. German car makers (used to) have the best margins in the most expensive products, luxury items sold outside of Germany. Those cars aren't built to last (like a Japanese car) nor are they fancy (like the first Tesla model).

German ICE cars are (and have always been) less reliable than Japenese cars. And more expensive. And come with very basic interior design / electronics unless you go for the luxury option.

AND NO EVs.

Who buys German cars? Show me one person who wants a VW.

  • signed, a German engineer
[–] [email protected] 2 points 1 week ago (1 children)

Went from an Audi to Merc. I will likely go Japanese next but both cars were really nice I just dont think they are worth the price. I would go back to audi but they have moved to a subscription model for features so I will likely go to lexus or just a standard brand out of Japan. Definitely not American.

[–] [email protected] 1 points 6 days ago

Yes, price is the point. Of course, a Mercedes is going to nicer than a Toyota, but is it worth its price tag?

[–] [email protected] 5 points 1 week ago (1 children)

Didn't the Volkswagen get super popular in part because it was cheap in a bad economy? It wasn't solely because of Hitler endorsing them, right?

[–] [email protected] 2 points 1 week ago

Right. It's the "People's car". The strategy was in the name.

[–] Reverendender 5 points 1 week ago (1 children)

I read this a few days ago about BMWs having plastic engines now. I plan to avoid.

[–] [email protected] 9 points 1 week ago

To be clear to those just reading your comment without clicking through to your reference, the engine is not plastic. The block is still metal, as are the internal parts, but there are a lot of plastic bits all over joining things together (cheaper and perhaps planned obsolescence). Too many parts on the engine being plastic obviously makes for reliability issues (as your link describes).

[–] [email protected] 4 points 1 week ago

The "great industrial leaders" heading these companies have been protected and mollycoddled by the German State, especially at the time of the Emissions Scandal (were the only person to get convicted was a lowly Engineer), so they interiorised well the "we're too big to fail" message and proceeded to go into full-on extractive mode in the full knowledge that no matter what the German and even European taxpayer will pay for saving their mismanaged and bled dry companies.

The result is entirely what invariably happens in such situations.

[–] [email protected] 3 points 1 week ago

Can't help but wonder what has been the impact of the support, e.g through subsidies, for automaker industry both nationally and internationally.

We keep on hearing that it's a huge industry, that it "creates" lots of jobs, that people buy cars from their own country as a form or pride, etc. I bet some of it is true but I also bet the negative impact is not communicated as clearly. Any research on the topic? I imagine it might highlight precisely how the EV transition (which in itself is also problematic due to car usage, battery recycling, etc) has been radically slow down, maybe also public transport usage, CO2 emission, etc. Anyway I'd love to read a paper on the topic.

[–] [email protected] -4 points 1 week ago

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