🔴 TOTAL COLLAPSE: German Economy Is DONE as Its BIGGEST Employer Shuts Down Operations
Summary
TLDRThe video discusses Germany's economic downturn, with Volkswagen considering plant closures due to declining sales and the shift to EVs. It highlights the impact of decoupling from China and Russia, Germany's major trade partners, on its economy. The script also mentions China's growing EV exports to Europe and the EU's protectionist measures. The economic crisis in Germany, the largest EU economy, is seen as a broader issue for the union, with forecasts predicting a shrinkage in 2024 and a rise in unemployment. The video concludes by noting the lack of support for Chancellor Schultz's policies amidst these challenges.
Takeaways
- 🏢 Germany's economy is facing significant challenges, with forecasts growing grimmer by the day.
- 🚗 Volkswagen, Germany's largest industrial employer, is considering closing two plants due to declining sales and difficulties transitioning to electric vehicles (EVs).
- 📉 Volkswagen has lost nearly a third of its value over the past five years and is currently the worst-performing European carmaker.
- 🌏 The decline in Volkswagen's fortunes is partly attributed to reduced financial support from China, its largest market.
- 📈 Despite EU tariffs, Chinese EV exports to Europe, including Germany, are increasing, suggesting a preference for Chinese EVs over Volkswagen's offerings.
- 💹 China's and Russia's economies are projected to grow faster than any EU economy, despite facing their own challenges.
- 🛑 Germany's economic downturn is not just cyclical but also structural, indicating a deeper, long-term issue.
- 📉 The German economy is expected to shrink again in 2024, following a contraction in the previous year.
- 🔻 The unemployment rate in Germany is expected to rise to 6.1%, reflecting the broader economic challenges.
- 🗳️ German Chancellor Olaf Scholz faces political headwinds, with recent elections showing a lack of public support for his policies.
Q & A
What is the current economic situation of Germany as discussed in the script?
-The script describes Germany's economy as being in a dire situation, with economic forecasts becoming increasingly grim and no immediate hope for recovery unless significant policy changes are made.
Why is Volkswagen considering closing plants in Germany?
-Volkswagen is considering closing two plants in Germany due to years of declining sales and major difficulties in transitioning to electric vehicles (EVs).
How has Volkswagen's value changed over the past five years?
-Over the past five years, Volkswagen has lost nearly a third of its value, making it the worst-performing European carmaker at the time of the script.
What is the impact of Volkswagen's potential plant closures on the German economy?
-The potential closures could have a significant impact on the German economy, as Volkswagen is not only an automaker but also Germany's largest industrial employer, with implications for employment and supply chain.
Why is there a decline in Volkswagen's sales, according to the script?
-The script suggests that a decline in sales is partly due to the lack of financial support from China, which is Volkswagen's biggest market, and challenges in transitioning to EVs.
How is the Chinese EV market performing in comparison to Volkswagen?
-Despite the EU's additional tariffs on Chinese imports, Chinese EV exports to several European countries, including Germany, have been increasing, indicating a preference for Chinese EVs over Volkswagen's offerings.
What is the role of China and Russia in the economic challenges faced by Germany?
-Germany's economic challenges are exacerbated by its decoupling from China, its largest trade partner, and losing cost-efficient energy resources from Russia, which are not considered smart policy moves.
What are the projections for the German economy in 2024 according to the latest forecasts mentioned in the script?
-The German economy is expected to shrink again in 2024, following a contraction in the previous year, with GDP likely to fall by 0.1%.
What is the expected unemployment rate in Germany as per the script?
-The unemployment rate in Germany is projected to rise up to 6.1%, which is a significant concern for the economy.
How does the script describe the nature of the economic crisis in Germany?
-The script describes the economic crisis in Germany as not only cyclical but also structural, indicating a deeper and more persistent issue than typical business cycles.
What is the broader implication of Germany's economic downturn for the EU?
-As Germany is the largest economy in the EU, its economic downturn is likely to lead to weaker performance across the union, affecting the entire region.
Outlines
🚗 Volkswagen's Struggle Signals Germany's Economic Downturn
The video discusses the economic challenges faced by Germany, particularly focusing on the automotive industry. Volkswagen, Germany's largest industrial employer, is considering closing two plants due to declining sales and difficulties transitioning to electric vehicles (EVs). This move comes after the company lost nearly a third of its value over the past five years, making it the worst-performing European carmaker. The video suggests that Germany's economic woes are tied to its trade policies and its reliance on China, as indicated by Volkswagen's CEO mentioning the lack of financial support from China. The video also contrasts Germany's situation with the growing EV exports from China to Europe, suggesting that Chinese EVs are more competitive. The broader economic downturn in Germany is expected to impact the entire EU, with forecasts predicting a shrinking economy and rising unemployment rates.
📉 Germany's Economic Crisis and Its Impact on the EU
This paragraph delves deeper into Germany's economic crisis, emphasizing its broader implications for the European Union. The German economy, being the largest in the EU, is expected to contract in 2024 following a previous year of decline. The Keel Institute has revised its growth expectations downward significantly, from a 1.1% increase to a 0.5% increase, indicating a pessimistic outlook. The unemployment rate is projected to rise to 6.1%. The crisis is described as not only cyclical but also structural, with the German economy failing to show signs of recovery. The video also touches on the pressure faced by European and US carmakers due to regulatory pushes for EVs, despite a decrease in consumer purchasing power. The economic challenges are compounded by the lack of public support for Chancellor Schultz's policies, as evidenced by recent election results. The video concludes with a call to action for viewers to engage with the content and anticipates further discussion in subsequent videos.
Mindmap
Keywords
💡Olaf Schultz
💡Economic collapse
💡Volkswagen
💡Electric vehicles (EVs)
💡Trade policies
💡Foreign policy
💡Decoupling
💡EU economy
💡Sanctions
💡Unemployment rate
💡Structural crisis
Highlights
Germany's economy is facing a severe downturn, with no immediate hope for recovery.
Volkswagen, Germany's largest industrial employer, is considering closing two plants due to declining sales and difficulties transitioning to EVs.
Volkswagen has lost nearly a third of its value over the past five years, making it the worst-performing European car maker.
Car sales in the EU are below pre-2019 levels, indicating a broader economic issue.
Volkswagen's CEO attributes the company's struggles to a lack of financial support from China, its biggest market.
EV exports from China to Europe are increasing, suggesting a shift in consumer preference away from German automakers.
Germany's economic policies, including decoupling from China and losing cost-efficient energy from Russia, are seen as detrimental.
The IMF projects that China's and Russia's economies will grow faster than any EU economy.
Despite EU tariffs, Chinese manufacturers may still be able to sell cars profitably in Europe due to cost advantages.
The German economy is expected to shrink again in 2024, with a revised GDP forecast down to a 0.1% fall.
The unemployment rate in Germany is projected to rise to 6.1%, indicating a worsening economic situation.
The Keel Institute suggests that Germany's economic crisis is not just cyclical but also structural.
European and US car makers are under pressure from regulators pushing for EVs, despite decreased consumer purchasing power.
German Chancellor Schultz faces both economic troubles and a lack of public support for his policies.
Transcripts
[Music]
hello everyone welcome back thank you
for being here when you constantly act
against your own interests and execute
the orders of someone to your own
detriment you should not be surprised
when the walls around you start to
crumble and the entire house of cards
starts to collapse and don't be too
surprised either when that's someone
whose orders you willingly executed for
a long time doesn't really come to your
resue
that was never part of the plan to begin
with Germany's Olaf Schultz is learning
this as we speak Germany once named the
sick men of Europe might very well be on
its deathbed since the dramatic economic
collapse of 2020 while remember what
happened then Germany's economy actually
failed to fully recover and now its
economic forecasts grow Grimmer by the
day it is safe to say there's no hope
for it in sight without the country
reversing back to its trade policies
that it used to have and also getting
back to at least somewhat of a sensible
foreign policy that actually served it
people so well for decades in the
beginning of September for the first
time in history the world famous German
automaker Volkswagen announced that it
is considering closing two plants in
Germany Volkswagen is not just an
automaker it has been Germany's largest
industrial employer theany company
employs
300,000 workers and hundreds of
thousands more individuals help Supply
the company Volkswagen cited years of
declining sales and major difficulties
transitioning to EVS as the main reasons
behind its planned shutdown over the
past 5 years the company lost nearly a
third of its value and now it is the
worst performing European car maker at
this time as the auto makers planning to
close German plants and end job
guarantees worker unions are trying to
block these closures to be fair Car
Sales have been declining in the EU as a
whole at this time for example car sales
are well below pre 20109 levels Oliver
Bloom the company's CEO reportedly
pointed to one of the two main reasons
that caused such dramatic collapse of a
once's biggest company in Germany to
Reuters he actually said the quiet part
out loud he said there are no more
checks coming from China he said so
they're not getting money from China
referring to Falling profits in
Volkswagen's biggest Market okay now
we're getting somewhere and now we're
hearing at least part of the truth by
the way you might find it really
interesting that while the German
automaker is struggling EV exports from
China to Belgium to the UK Germany and
Spain have been increasing
so people are more willing to buy
Chinese EVS than they are uh an EV from
Volkswagen decoupling from China
Germany's biggest trade partner for well
over a decade as well as losing coste
efficient energy resources from Russia
really were not smart policy moves on
the other hand China's and Russia's
economies are doing just fine sure they
have their own issues but the
international monetary fund for example
projects that they will grow faster than
any EU
economy when you speak to Putin does he
acknowledge the sanctions does he
acknowledge how much his economy has
been hurt or does he just not care I
think he cares but he will not really
admit it so you get
some you get some idea that it really is
hurting him and that he understands the
Deep impacts of our sanctions on his
economy and I'm always mentioning it
because it's necessary to say this is
now happening to a country that is not
that advanced that is
really needing all the Technologies from
the rest of the world for having a
similar standard of living and for
having the chance to be part of a growth
in the world economy and this is now the
real damage to the Russian economy that
they have no chance to do this the
telegraph recently reported that even
though the EU has announced additional
tariffs ranging from
17.4% to
37.6% on Chinese Imports which already
carry a 10% import Levy such is the cost
advantage that many Chinese
manufacturers may still be able to sell
cars profitably in Europe clearly higher
Imports and other protectionist measures
are not the answer here they're not
going to resolve the issue Volkswagen is
just a symptom of a much broader deeper
economic downturn that will impact the
EU because this isn't just Germany's
problem Germany is the biggest economy
in the EU as you know and whatever it is
experiencing is likely to expand
according to the latest European
forecast German economy is expected to
shrink again in 2024 after it has
already fallen the previous year
subsequent possibilities of recovery are
weak positive signals in the middle of
the year have not been confirmed which
is why the Keel Institute is revising
its expectations for this year and its
coming year significantly downwards GDP
is likely to Fall by
0.1% in 2024 compare that to their
forecast of a positive 0.2% increase for
2025 growth expectations those are down
from 1.1% to
0.5% that is a dramatic revision down
the unemployment rate this is very
important the unemployment rate is
likely to rise up to
6.1% the keil Institute further
explained that the German economy is
increasingly facing a crisis that is not
only cyclical as you would expect for
any business cycle but a structural in
nature the KE Institute further drives
the nail in the coffin of the German
economy saying the German economy is not
getting off the ground the signs of a
beginning recovery that were observable
a few months ago have not materialized
leading indicators now are signaling
that economic output will continue to
stagnate for the time being given the
current low level of overall economic
production however the recovery will
remain weak overall we have revised our
forecast downwards as FKS Fagen plans to
shut down its German plans for the first
time in 87 years European and US car
makers are also under pressure from
Regulators who push EVS despite the fact
that fewer consumers whose purchasing
power has decreased are willing to pay
more for an EV rather than purchase a
gas engine Germany is the biggest
economy in the EU and whatever it is
experiencing will translate into weaker
performance across the union for German
Chancellor Schultz these circumstances
are less than POS positive since in
addition to economic troubles the latest
elections show that the German
population does not support his policies
whatsoever thank you for watching I hope
that this video was interesting remember
to like subscribe and share goes a long
way and I will see you back here
tomorrow enjoy the rest of your day take
care
[Music]
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