Breaking: Die Zerstörung von BASF in Deutschland!

Summary

The video discusses the decline of BASF, one of Germany's largest chemical companies, emphasizing the impact of rising energy costs, high social charges, and increasing regulations in Germany. The speaker criticizes the government's response, arguing that it's out of touch with the reality of the economic shift. BASF's decision to invest in China and reduce operations in Germany is seen as evidence of the country becoming less attractive for business. The speaker stresses that without significant reforms, Germany's economy may face further challenges as companies move production abroad.

Takeaways

• 😟 BASF is experiencing a significant decline, with both political ignorance and poor economic advisors exacerbating the situation.
• 📉 BASF's stock has dropped by 24% over the last five years, with operational profits also steadily declining.
• 💼 Many jobs at BASF, especially in Ludwigshafen, are at risk due to economic pressures like supply chain issues and rising energy costs.
• 🏭 BASF's revenue has stagnated over the last decade, decreasing from €74 billion ten years ago to an expected €66 billion in 2024.
• 🔻 BASF's operating profit has dropped drastically, from €10 billion in 2010 to just around €3.5 billion recently.
• 🌍 High energy costs, social taxes, reduced working hours, and regulatory burdens are pushing BASF to shift its production abroad, particularly to China.
• 💸 BASF is closing parts of its Ludwigshafen plant while investing €10 billion in a new Chinese facility, resulting in significant job cuts in Germany.
• 🚫 The current economic environment is seen as a fundamental shift rather than a temporary crisis, with long-term consequences for German industries.
• 🪙 The company has reduced its dividend from €3.40 per share in 2023 to a minimum of €2.25 per share going forward.
• 🏦 BASF’s deteriorating profits and operational struggles could impact its ability to secure favorable financing conditions in the future, further threatening its financial stability.

Q & A

What is the main criticism of BASF's current situation according to the speaker?

The main criticism is that BASF is facing a decline due to high energy costs, excessive bureaucracy, and social costs in Germany, which are pushing the company to relocate its production abroad.

Why does the speaker believe that the political response to BASF's issues is inadequate?

The speaker argues that the political response is inadequate because it treats the situation as a temporary crisis and believes companies can adapt, rather than recognizing the fundamental economic changes and challenges BASF is facing.

What has been the trend in BASF's revenue over the past decade?

BASF's revenue has been stagnant or slightly declining over the past decade, with expected revenue for 2024 being €66 billion compared to €74 billion ten years ago.

How has BASF's operating profit changed since 2010?

BASF's operating profit has significantly declined from €10 billion in 2010-2011 to around €3.5 billion in recent years.

What factors are contributing to BASF's decision to move production abroad?

Factors include high energy costs, increased social contributions, reduced working hours with rising wages, and excessive regulation in Germany, which make it more economically viable to relocate production.

What investment decision has BASF made recently regarding its production facilities?

BASF has decided to invest €10 billion in a new large-scale plant in China while closing parts of its production in Ludwigshafen, Germany.

How does the speaker view the concept of 'corporate patriotism' in relation to BASF?

The speaker dismisses the idea of 'corporate patriotism,' arguing that companies are not obligated to incur losses for the sake of patriotism, especially when they can be more profitable abroad.

What change has BASF announced regarding its dividend policy?

BASF has announced a reduction in its dividend, from €3.40 per share in 2023 to a minimum of €2.25 per share, due to financial constraints.

What criticism does the speaker have regarding Marcel Fratzscher's statement about energy-intensive industries?

The speaker criticizes Marcel Fratzscher for suggesting that it is beneficial for energy-intensive industries to move abroad to become more innovative, arguing that it leads to job losses in Germany rather than retaining skilled workers.

What does the speaker suggest as a solution to improve the situation for companies like BASF in Germany?

The speaker suggests implementing a large-scale reform program, such as a 'Hercules Program,' which would include reducing social contributions, cutting bureaucracy, and eliminating excessive regulations to make Germany more competitive.