What Happened To Quality German Cars?

Summary

The video script explores the declining reliability of German cars, once renowned for their quality and engineering. JD Power studies reveal that U.S. and South Korean cars now outperform German models, with BMW ranking ninth, Mercedes 19th, and Porsche 24th. Despite technological advancements, German cars face issues with defects and recalls. Classic car experts and industry insiders discuss the shift from engineering focus to profit-driven management, impacting quality. The script also touches on the challenges of transitioning to electric mobility and the importance of maintaining the German car's legacy of excellence.

Takeaways

• 🚗 German cars have historically been known for their quality and advanced technology, but recent studies suggest that their reliability has declined.
• 📉 JD Power's studies indicate that German cars are no longer leading in quality, with US and South Korean cars ranking higher, and BMW being the highest-ranked German manufacturer at ninth place.
• 📊 The sophistication of German cars is appreciated by customers, but it can also lead to more defects and issues, as noted in the IQs survey which asked over 220 different questions to customers.
• 🔍 Quality issues and recalls in German cars are more transparent in the USA, while in Germany, such matters are often not as openly discussed.
• 💡 The 'dieselgate' scandal highlighted the manipulation of exhaust gas values by German manufacturers, which significantly impacted their reputation.
• 🏎️ Germany has a legendary bond with automobiles, being the birthplace of the car and having a rich racing heritage, which contributed to the 'Made in Germany' myth.
• 🛠️ Classic German cars from the 70s, 80s, and 90s are considered to be of higher quality and more durable than modern cars, according to a Berlin classic car dealer.
• 👔 The shift in focus from engineering to marketing and shareholder value has affected the quality of German cars, as noted by a former BMW Motorsport director.
• 🛠️ A 2022 study by the German Automobile Club (ADAC) found poor workmanship and material quality in some models from VW Group and Daimler.
• 🌐 Despite reliability issues, German cars still have a strong emotional appeal and dominate the market, even at high prices, as shown in JD Power's emotional appeal study.
• 🔋 The transition to electric mobility presents a new challenge for German manufacturers, with the need to quickly develop expertise in EV hardware and software, which has led to errors and software problems in new models.

Q & A

What is the general perception of German cars in the video script?

The script suggests that German cars, once known for their quality and engineering, are becoming less reliable over time, and their quality no longer matches their once excellent reputation.

What does the script imply about the management's role in the decline of German car quality?

The script implies that management decisions, possibly prioritizing profits and shareholder returns, have led to a decline in engineering quality and, consequently, the overall quality of German cars.

Which American data analysis company is mentioned in the script, and what does it do?

JD Power is mentioned as an American data analysis company that regularly publishes studies on the quality of automobiles, indicating that German cars have not been at the forefront for a long time.

According to the JD Power study mentioned, which non-German car manufacturers ranked higher than BMW?

The study found that cars from the U.S. and South Korea were the best, with BMW being the highest-ranked German manufacturer at ninth place.

What does the script suggest about the emotional appeal of German cars?

Despite the decline in quality, the script suggests that German cars still have a high emotional appeal to customers, which contributes to their sales and market presence.

What is the significance of the 'dieselgate' scandal mentioned in the script?

The 'dieselgate' scandal refers to an incident where German manufacturers manipulated exhaust gas values, which significantly damaged the reputation of German cars, especially in the U.S. and California.

How does the script describe the historical significance of cars in Germany?

The script highlights that the car was invented in Germany in 1886, and German cars have a long history of quality and innovation, including a strong racing heritage.

What does the script suggest about the future of German cars in terms of technology and innovation?

The script suggests that German manufacturers are working hard to adapt to new technologies, such as electric mobility and digital services, which are crucial for their future success.

What challenges does the transition to electric mobility pose for German manufacturers according to the script?

The transition to electric mobility presents challenges such as a lack of experience with EV hardware and software, leading to production errors and software problems in new cars.

How does the script relate the image and sales figures of German cars?

The script suggests that the image of German cars plays a significant role in their sales figures, and that maintaining this image is crucial for the continued success of German car manufacturers.

What does the script suggest about the longevity of older German cars compared to modern ones?

The script suggests that older German cars, such as those from the 70s, 80s, and 90s, were of higher quality and more durable than many modern German cars, which may only last 15 to 20 years.