End of the road (Photo by Sobottaullstein bild via Getty Images)

The three-piece band was doing its best to lift spirits with relentlessly upbeat pop songs and bursts of oompah music as rain plummeted down on a bleak autumnal day. A handful of people sat scattered at tables set up under an awning beside some food stalls and a small ferris wheel. Four middle-aged women swayed together in unison to the music, doing their best to bring the Oktoberfest vibe to their town, while a few other brave souls swigged pints of lager or munched on their sausages.
But it will take more than a few blasts of brass, bratwurst and pilsner to lift the storm clouds over Wolfsburg. For this prosperous place, about two hours’ drive west of Berlin, is a company town like few others, built from Nazi roots off the back of Volkswagen — “The People’s Car Company” which overcame its fascist birth to become the world’s highest-earning motor manufacturer. Now, however, it is in serious trouble as persistently sluggish management considers closing plants in their homeland for the first time in their history.
Such is the scale of this crisis — labelled an “earthquake” by the local paper — there are even mutterings this mighty car giant might emulate the high-speed crash of Nokia, the Finnish behemoth dismantled and sold within a few years of being the largest maker of mobile phones. Tensions are rising as the powerful IG Metall union, which just began another round of negotiations with managers, insists all German sites must remain open, even as there have been furious clashes with bosses at internal meetings. ’The situation is not good,” said one worker. “I am 54 so my working life is nearly over and I hope to get my pension in three years time but this is very, very worrying for Wolfsburg. I hope this plant will not shut.”
That kind of statement seems unimaginable in this city made by Volkswagen. Step out of the station and you see the world’s biggest car plant, three times the size of Monaco and where 70,000 employees churned out almost half a million vehicles last year. In front of you squats a futuristic science centre designed by Zaha Hadid, which serves as a sculptural reminder that this otherwise rather dour place has some of the highest average incomes in Europe thanks to cars. Even that bustling main shopping street is named after Ferdinand Porsche, creator of the iconic Beetle car and founder of a globally famous marque.
Almost half the workforce in Wolfsburg helps make cars, the highest proportion of any city in a country with 47 other places heavily dependent on this core industrial sector. “Volkswagen not only stands for economic prosperity, but also has a strong emotional component,” said the city’s mayor Dennis Weilmann. “Many families have relatives or acquaintances at VW and the majority of Wolfsburg residents have been driving a Volkswagen since their first car. Volkswagen also invests in many different areas of society, from art and culture to voluntary work and leisure events. It is therefore completely understandable that the current news is causing uncertainty among citizens.”
The city and car company have grown up together. Wolfsburg — twinned with Luton — was created in 1938 for one of Adolf Hitler’s pet projects: the mass production of cars for the people. It was originally named after the Kraft durch Freude Wagen (Strength Through Joy Car), and seen as a model Nazi town, only to be devastated by Allied bombs during the Second World War, after slave labourers were forced to manufacture rockets and military vehicles. Then, a British army major kickstarted production of the quirky and eventual global best-selling Beetle. Three generations later, the city is home to about 125,000 people with a university and football team — sponsored by VW, of course — that once won the Bundesliga.
Cars have come to symbolise nations ever since Henry Ford invented mass production. Think of the United States brimming with confidence in its post-war heyday — and you picture those huge Cadillacs with space-age tail wings. Italy has its gorgeous supercars and unreliable mass-produced motors. And the rollercoaster ride of Britain’s manufacturers reflected the economic and political zeitgeist in our own country. But in Germany the sector is a source of national pride, the key to an economy that showcases their consensual corporate model. As one top economist put it: “VW is the alpha male.”
So VW’s troubles after bungling the transition to electric vehicles are not just woeful for Wolfsburg. The sector powering Germany’s economic success for decades is struggling, exposing a national inertia at time of intense disruption and rapid technological change. As cars turn into computers on wheels, analysts fear the German giants are being left in the dust of faster-moving rivals from China and the United States. So there is sudden angst that all those beautifully-engineered marques, with their purring combustion engines, might soon look like expensive relics from another age — and fears that if the sector collapses, it will leave a large hole in the heart of the economy that props up the European Union.
And the consequences might not only be economic. Factory closures and job losses could easily push more voters into the arms of the populist parties thriving on both political extremes. Already, Alternative for Germany (AfD) is fighting against what it calls the “erroneous path to electro-mobility”, making opposition to EU plans to ban sales of petrol and diesel-powered cars a central part of its platform. Analysts suggest VW sites in Osnabrück, Lower Saxony, and Dresden, Saxony, are potential targets for closure — both regions where the AfD is building support.
The car industry accounts for about 1.8 million German jobs in total, 8% of annual economic output and 16% of exports. These are impressive figures. But Professor Marcel Fratzscher, president of the German Institute for Economic Research, says that simply looking at the data underplays its significance, since it has been a key driver over the decades of innovation, which spills over to benefit other parts of the economy. “The big concern is China, electric cars and automated vehicles.” he says. “[Volkswagen] were leaders but now they are lagging behind in electric vehicles. They have lost the technological leadership.”
Last year, China exported more cars than Germany for the first time. Germany is still the biggest car exporter to Britain, but Chinese imports such as cheap BYD eco-vehicles have risen tenfold in two years, while Elon Musk’s Tesla dominates the upper echelons of the electric market. Beijing’s latest data shows their production of new energy vehicles has soared by almost half over the past year. Meanwhile German makers also face a reversal of fortunes in the lucrative Chinese market that provided almost a third of their revenues last year — and this hit VW’s premium brands such as Porsche and Audi especially hard. The firm’s share in this market has fallen from 19% to 14% since 2020, as buyers shift from petrol and diesel-powered vehicles, while BMW last month blamed “ongoing muted demand” in China for cutting their profit forecasts.
Fratzscher is confident German manufacturers can reinvent themselves as they have in the past. “I am by and large optimistic because the skills that made German industry strong over the last 70 years — and especially the last 20 years — are still there,” he says. “Now they need to shift this innovation to new technologies — not just batteries but software, where VW is struggling badly. But they still have strong brands and distribution networks.” According to Fratzscher, then, “pessimism is over-done — although it depends, of course, how economic policy and geopolitics plays out. But taking a snapshot today of German industry, I would say it is pretty strong.”
But other experts disagree. In his forthcoming book Kaput: The End of the German Miracle, Wolfgang Münchau looks at how the nation slipped from technological innovators to sluggards due to blinkered attitudes, lack of investment and bad decision-making. He highlights the media prominence of an academic who argues schools should not use any digital content to underline their anachronistic attitudes. Then he tells the anecdote of a photographer who found it slower to send pictures on the internet to a printer 10 kilometres away than to travel there by horse. Such stories are familiar for anyone who spends time in Germany, as many football fans discovered to their surprise at the Euros this summer. Münchau polemically concludes that German car makers are like typewriter manufacturers, whose market was killed off swiftly by the arrival of desktop computers and cheap printers.
Reminding readers that VW sacked their chief executive, who tried to modernise the firm by focusing on electric cars, Münchau fears the problems may be existential for these car makers. “I am not predicting the German industry will disappear, but it will decline and no longer play the central role it does in the world and as a hub for German industry,” he tells me. He blames “oligopolistic groupthink and arrogance” along with a “lack of entrepreneurial dynamics” as the Germans fumble the problems confronting all legacy car producers, before going on to argue that the EU response of protective trade barriers against imported Chinese electric cars “is the playbook of how industries decline”.
VW must also navigate the nation’s consensual approach to labour relations that is currently also testing Tesla, which chose Germany over post-Brexit Britain as the location for its first European factory. Musk typically moaned about the red tape that delayed the opening of his plant near Berlin, while his employees created a works council against the wishes of their bosses. And the firm is reportedly warning staff that work practices and absenteeism levels must change if they are to continue in the country, attracting some criticism after managers were sent to the homes of workers on long-term sick leave.
Ultimately, the German car industry grew complacent, resisting the trend towards electric cars for too long. And once again, this sector symbolises wider issues in a society that became a corpulent victim of its own success — despite a reputation for taking the long-term approach. Its arrogance was shown by the emissions scandal, which led to huge fines and criminal charges, after VW’s cheating emerged in 2015. Then executives were slow to understand that electric cars are different products to traditional vehicles, ones that rely on powerful batteries and smart software rather than slick engines and smooth gear boxes. One economist in Berlin laughed as he told me how Tesla and Chinese firms update software constantly “but in Germany everyone thinks it is unbelievable that you can change cars through the air”.
Professor Andreas Knie, a specialist on transport and technology, believes the problem lies deep in Germany’s psyche, arguing that his country needs to transform its governance and corporate structures to embrace flexibility, failure and innovation. “We still believe we are the best footballers, the best soldiers, the best car makers — we don’t understand that the world is changing. Now in Germany we build the wrong cars. We are masters of hardware but not of software. We are losing market share dramatically. We will have 50% fewer jobs in the car industry in a decade.”
These are shattering predictions. And the problems are not unique to Germany: one in three European car factories is under-utilised. But Germany looks like an analogue country in a digital world. Knie fears that the cities dependent on the traditional car giants face a tough future. “Wolfsburg will be like Detroit — it will shrink very much. But so will other German car cities — even Stuttgart, the capital of the German car industry, will probably shrink,” he tells me. “It’s time to say goodbye to the car industry in Germany.” It seems ironic, but VW and Germany both seem to have forgotten Vorsprung durch Technik — that progress comes through technology.
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SubscribeThe real question is the president’s guilt on charges of bribery while Vice president. His son and brother acted as bagmen collecting bribe money for the big guy. Foreign governments and companies bribed the American vice president and Obama allowed it to occur and allowed the American government to deliver on the bribes.
The Bidens are the most disgusting political family in American history; no other is even close, not even Bill and Hillary. Joe molested his daughter, she wrote in a diary left behind in a rental, adding that it has screwed up her life. The hypocritical piety on display in his rare and heavily scripted political appearances is nauseating.
The most powerful man in the world is senile and has a memory of a clam. Arkancide is a far more serious worry. After the Trump show trials nobody in his right mind can think that in this case justice will be done. It is detraction from a far worse corruption racket. Hunter will sentenced to 100 hours of community service, which undoubtedly he will be able to mess up, and daddy;s goons will give him a presidential pardon. It is called democracy and the USA exports it all around the world. Like European values. Another great invention since sliced bread.
The last paragraph talking about Biden’s behaviour in general…Where is the comment on corruption and foreign states? It wasn’t all crack and prostitutes…. It was much bigger than that.
That evidence will not be heard by the jury. It’s not admissible. The other stuff mentioned is.
Not in the eyes of the corporate media. All that is down the memory hole.
Well, if you break the law you should expect prosecution – no matter how close you are to the presidency. But, just for balance, you understand, it would be interesting to know whether David Weiss (or someone in his family) is a donor to the Republicans or has come out in favour of Trump. Who elected or appointed him? Did he promise beforehand to go after Hunter Biden?
Does anyone know?
PS: What is the general Unherd opinion about making a false statement on a federal form or possessing a firearm when the rules say you should not? Is this kind of behaviour rare? Heinous? Should everyone who does it get 25 years in jail?
April 11 , 2024
FACT SHEET: Biden-Harris Administration Announces New Action to Implement Bipartisan Safer Communities Act, Expanding Firearm Background Checks to Fight Gun Crime’“Every year, thousands of unlicensed gun dealers sell tens of thousands of guns without a background check, including to buyers who would have failed one – domestic abusers, violent felons, and even children. This single gap in our federal background check system has caused unimaginable pain and suffering.’
Do you really think false statements on background checks for guns is a minor thing?
No, but then I am European and in favour of gun control. I just wanted to check what the pro-Trumpers on the site felt about it.
When it was Trump in the dock no one talked about how accounting fraud was bad, and everybody talked about biased Democratic prosecutors and politicised justice, and (in another process) how everybody lied about their assets, and no one got hurt, … I thought it was worth going through the same checklist. What are the politics of David Weiss? Why does no one ask? If they do not matter, why do those things matter when it is Trump being accused? How much of this is about respect for the law, and how much is about using the law to get your enemies down?
‘When it was Trump in the dock no one talked about how accounting fraud was bad,….’
Who was defrauded by these accounts? Not one person.
When did NDA arrangements become illegal?
When did payments to prostitutes become ‘campaign expenses’ that have to be declared as campaign expenses?
The Hunter Biden case is only being prosecuted because Biden rejected a deal that would have seen the charges dropped, and him given 2 years probation. Hunter Biden wanted more immunity from prosecution than even the Biden regime thought reasonable.
The idea that Hunter Biden did not lie about being a drug-addict when he bought a gun, is absurd , especially when you can listen to him read his memoirs about his drug addiction.
‘….everybody lied about their assets,’
Do you have a house? How much is it worth? Remember you will be fined hundreds of millions of dollars if you are inaccurate.
Although, of course, if you decide to take out a loan backed by your house , the people doing the loan will do their own valuation and lend on that basis.
It was exactly the same with Trump. The people who dealt with ignored Trump’s valuation, did their own, and did business on that basis, and testified that they were perfectly happy. Absolutely normal run of the mill business.
Meanwhile, Hunter Biden is declaring that the famous silver laptop does not belong to him, although some of the data on the laptop is also in Hunter Biden’s iCloud backup data, that Apple have released after being subpoenad…
If you’d been following, you’ve have found chatter about Weiss bubbling away for quite a while. https://apnews.com/article/hunter-biden-david-weiss-congress-republicans-aed25541b709a57371cdfe1582be0c5a
Weiss is Republican and was appointed acting assistant DA in Delaware by Trump, but then retained by Biden. Weiss briefly worked with Beau Biden when Beau was the Delaware attorney general in 2010. He was appointed by Garland and was and caused general complaints on fairness from the GOP congressmen/pro-Trump crowd when he cut a sweetheart plea deal for Hunter Biden on the gun charges due to apparently overbroad immunity elements and lack of clarity and issues of slow-walking the case. The plea deal was eventually thrown out by the judge in July 2023 and hence this case.
Hunter Biden appears to be a serial mess-up and this case is at the milder end of the things he’s been accused of, but has an element of schadenfreude since gun control is a policy advocated by his father, and the ‘Russian interference’ laptop has been verified as Hunter’s and included in evidence to show Hunter in possession of a gun.
Ah, Information! It would seem that Weiss cannot reasonably be dismissed as a Republican attack dog (unlike at least the Stormzy Daniels case against Trump). Good to know. No disagreement to the fact that Hunter is a serial mess-up, BTW.
Sorry for being ill-informed, but there is a limit to how much you get from Unherd and European MSM. Thanks for the info.
The ‘quality’ end of European MSM (not so much the UK) has a habit of publishing rehashed and translated opinion pieces ‘inspired by’ the NY Times, or occasionally the Washington Post.
The underlying quality is equivalent to reading an opinion piece about Europe in the NYTimes and getting shudders when you see how they warp facts and background you know in detail to fit a narrative for an America reader.
Tell it like it is, the American legal system is on trial. Do those born into the elite exploitative class face the same consequences as those born into the exploited classes. Strange that is even a story, we all know that the answer is NO.
How long before the laptop comes up? That’s my very most favourite conspiracy theory!
Come on lads, I know you are just itching to tell us about the horrors on Hunter’s laptop that you read about, erm, well Tucker said it so it must be so! Laptop from hell!!!!
No, no, no! You will have no such pleasure. We all memorised those pictures. Absolutely no need to repeat the horrors and give you pleasure you are begging for. The problem with socialist: they keep begging.
Lawfare! Unequal application of the law! The end of the world!
What else were you people saying last week as your fat felon god-king was humiliated in New York?
Calm yourself, CS.
How can I can be calm amongst this grotesque miscarriage of justice?!?!? It is literally the end of the world, or something like that! Lawfare! Weaponization of the justice system! Civil war has begun!
OH SHUT UP
The Biden administration has promised to crack (no pun intended) down hard on background checks for people who want to own a gun.
Only stringent background checks on application for guns can reduce America’s gun violence problem. Any irregularity in your application and the President will be ‘coming for you’.