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.

Outlines

00:00

🚗 Decline in German Car Quality

The script discusses the decline in the quality of German cars based on recent studies, showing that they are becoming less reliable over time. It highlights the historical reputation of German cars for quality and engineering excellence, but indicates that this image is no longer consistent with current standards. The American data analysis company JD Power's studies reveal that German cars are no longer leading in quality, with BMW ranking ninth, Mercedes 19th, and Porsche 24th. The script mentions that German cars are becoming more sophisticated, which sometimes leads to defects and issues for customers. It also touches upon the dieselgate scandal, which damaged the reputation of German manufacturers.

05:01

🏎️ Legacy of German Automobiles and Modern Challenges

This paragraph focuses on the historical legacy of German automobiles, emphasizing their racing heritage and the high quality of older Mercedes-Benz models from the 70s, 80s, and 90s, which are considered superior to modern cars. It discusses the shift in product planning from engineering to marketing, leading to a change in quality. The paragraph also mentions the challenges faced by German manufacturers in the transition to electric mobility, where new technology is often unproven and can lead to errors and software problems. Despite these issues, German cars still hold a high emotional appeal and dominate the market, even with high prices.

10:02

🔋 The Future of German Car Industry in Electric Mobility

The final paragraph delves into the new challenges faced by the German car industry, particularly the transition to electric vehicles (EVs). It points out that German engineers often lack experience in EV hardware and software, leading to production issues. The script suggests that the industry is working hard to acquire new competencies in electric energy, electric motors, and digital services. It emphasizes that the future success of the German car industry is at stake and is closely linked to its ability to adapt to these new technologies and maintain the quality that consumers expect from German cars.

Keywords

💡Reliability

Reliability refers to the dependability and consistency of a product or system to perform its intended function without failure. In the context of the video, it discusses the declining reliability of German cars, which were once known for their quality and durability. The script mentions that studies show German cars are becoming less reliable over time, which is a significant shift from their historical reputation.

💡Quality

Quality is a measure of how well a product or service meets certain standards or expectations, often in terms of excellence and durability. The video script raises concerns about the perceived decline in the quality of German automobiles, suggesting that they no longer live up to their once stellar reputation. It contrasts the current state of German cars with their past image of excellence.

💡German Automobile Industry

The German Automobile Industry is known for its historical significance and contribution to the global market with high-quality vehicles. The script discusses the industry's past glory and current challenges, including the shift from traditional engineering to more technology-focused vehicles and the need to adapt to electric mobility.

💡JD Power

JD Power is an American data analytics company known for its consumer satisfaction surveys and studies on product quality, including automobiles. The script refers to JD Power's studies, which have found that German cars are no longer leading in quality rankings, with American and South Korean cars taking the top spots.

💡Sophistication

Sophistication in the context of cars refers to the advanced technology and complex features integrated into the vehicle. The video mentions that while customers appreciate the sophistication of German cars, it can sometimes lead to issues and defects, indicating a trade-off between advanced features and reliability.

💡Recall

A recall is a safety procedure by which manufacturers take back a product due to defects that could cause harm or malfunction. The script mentions that defects in German cars are documented and subject to recalls in the USA, suggesting a lack of transparency in Germany where such issues might be 'swept under the rug'.

💡Dieselgate

Dieselgate refers to the emissions scandal involving German car manufacturers, where they were found to have manipulated exhaust gas values to meet emission standards. The script uses this term to illustrate a significant blow to the reputation of German cars and their reliability.

💡Emotion and Image

Emotion and image are concepts related to how consumers perceive and feel about a brand or product. The video script suggests that despite reliability issues, German cars still hold a strong emotional appeal and positive image among customers, which contributes to their sales and market presence.

💡Electro Mobility

Electro Mobility refers to the shift towards electric vehicles and the infrastructure that supports them. The script discusses the challenges German manufacturers face in transitioning to electric vehicles, including the need for new competencies in hardware and software development.

💡Product Planning

Product planning is the process of defining the scope and objectives of a product before it is developed and launched. The video implies that in the past, German cars were driven by engineering and quality, but modern product planning may be more influenced by marketing and shareholder demands, potentially compromising quality.

💡Classic Car Association

The Classic Car Association represents enthusiasts and professionals in the classic car industry. The script mentions an individual from this association to highlight the enduring quality of older German cars compared to modern models, suggesting a decline in build quality over time.

Highlights

German cars are facing a decline in reliability according to recent studies.

Historically, German cars have been known for their quality and advanced technology.

JD Power's study shows that German cars are no longer leading in quality, with BMW ranking ninth, Mercedes 19th, and Porsche 24th.

The study surveyed over 80,000 U.S. residents about their new car experiences.

German cars are reported to have more defects, even leading to recalls in the USA, while issues in Germany are often overlooked.

The blog kfz-recalls.de documents vehicle problems in the automotive industry, highlighting the lack of transparency in Germany.

The 'Dieselgate' scandal damaged the reputation of German manufacturers for manipulating exhaust gas values.

Classic German cars from the 70s, 80s, and 90s are considered to be of higher quality than modern cars.

German cars were once synonymous with good engineering and quality, but this has changed over time.

The shift in focus from engineering to marketing and shareholder profits has affected the quality of German cars.

German Automobile Club (ADAC) found poor quality of work and materials in some VW group and Daimler models.

Auto Bild, a German car magazine, uses various methods to rank car brands in terms of quality and reliability.

Despite technological advancements, modern German cars are not as reliable as they used to be.

German cars still have a high emotional appeal and dominate the market despite high prices.

The transition to electric mobility presents a new challenge for German manufacturers, with issues in hardware and software.

German manufacturers are working hard to adapt to the new competencies required for electric vehicles.

The mythic status of German cars is at risk, and their future success depends on overcoming current challenges.

Transcripts

[Music]

German cars are unreliable studies show

they're just getting worse as time goes

by

definitely why does the quality of the

German automobile no longer match its

once wonderful image

engineering

was

was limited from the management again

German cars have been the epitome of

quality and perfect technology for over

a hundred years

that was then today things look

different

is

slim

how long can German cars live off the

image of Excellence that they built up

in the past

is

the time when the German automotive

industry could rest on its Laurels is

long gone

[Music]

um

American data Analysis company JD Power

regularly publishes studies on the

quality of automobiles and the Germans

haven't been at the Forefront for a long

time

the last study found cars from the U.S

and South Korea were the best the best

German car manufacturer is BMW ranked

ninth

Mercedes is ranked 19th Porsche 24th

and far behind in the rankings are

Volkswagen and Audi

respondents in the study included all

U.S residents who had registered a new

car in the last year

so this year for example in our IQs

survey we received more than 80 000

results within the survey we question

the customers on more than 220 different

questions the first question we ask is

did you have any problem with that

feature the German cars what we see is

that cars have become increasingly

sophisticated

and the sophistication is appreciated by

the customers

but sometimes it causes issues for the

customers defects in German cars are

documented precisely in the USA even if

there are recalls due to issues in

quality in Germany matters like this are

often swept under the rug that's why

journalist Nico Ganser started the blog

kfz recalls.de on it he publishes data

on all the vehicle problems in the Auto

industry

Information

Administration the um

in

in words and

um

[Music]

it's no wonder that the dieselgate

scandal in which German manufacturers

manipulated exhaust gas values blew up

in the U.S

what's being up on California and

um

[Music]

Germany and the automobile a legendary

Bond after all the car was invented in

Germany in 1886 Carl bent slayed the

foundation for the successful made in

Germany product

Berlin classic car dealer burkaj Steins

has many Mercedes-Benz models from the

70s 80s and 90s on offer in terms of

quality they definitely are ahead of the

cars of 2023

the modern cars which are produced now

they will find their end in about 15 or

maximum maximum 20 years different than

these cars these cars you can drive for

eternity

as early as the 1930s Mercedes helped

build the legend of the German

automobile on the racetrack Germany has

a dazzling racing Heritage from the

silver arrows

to seven-time Formula One World Champion

Michelle Schumacher

before his time at the world's classic

car Association Mario Tyson was

entrenched in the world of Formula One

as BMW's Motorsport director he knows

German cars from all eras down to the

very last detail and also knows what

lies behind the made in Germany myth

50 years ago the marketing marketing

didn't play a big role in product

planning and product decisions so it was

indeed the engineers on the r d side and

also on the production side and who

steered the product the product range

and product planning and certainly they

looked

in the first place about good

engineering quality

Tom Fisher is one of the best classic

car restorers in the world he knows that

German cars were once convincing in

terms of quality the solidity

demonstrated by this BMW from 1937 was

no longer available in German cars from

the mid-1990s

the concurrence getting bigger and all

the congruent Brands they earned much

more money the managers they were in the

situation that they have to bring more

money to the shareholders the quality

changed definitely and it was the

engineering uh was uh was limited from

the management

a German manufacturers now have to save

on production costs in 2022 the German

Automobile Club adac examined 580 cars

specifically to analyze quality of work

and material things didn't look great

for some models from the VW group and

Daimler

[Music]

German car magazine Auto build has also

been putting car brands through their

Paces for decades

and they use a wide variety of methods

to create a ranking in terms of quality

and reliability

[Music]

is

[Music]

foreign

with the VW Beetle there was a simple

guarantee

[Music]

eventually more and more advanced

technology was installed in its

successes from the motor to the

assistant systems to digital operations

[Music]

foreign

[Music]

cars is no longer as reliable as it used

to be modern German cars can still win

the hearts of customers in an appeal

study the analysts from JD Power asked

about the emotional appeal of cars and

the Germans are right up there

German cars are performing at a high

technology level bringing much customer

Delight to the to the market they're

also doing it in a way I described about

emotional attachment image of German

cars that we see in our studies remains

high if you look at which cars are sold

and are on the roads German cars play a

dominant role

despite being very highly priced

um

Tom Fisher deals with car brands from

all over the world and is keenly aware

of how closely the image and sales

figures of cars are linked

located

is still selling every year more and

more of course only with emotion if the

Italians are losing the emotion nothing

there is nothing left and if we Germans

lose quality that's the same measure

that's that's one of those points why

people are buying German course and now

now there's another new challenge the

transition to Electro Mobility German

Engineers often lack experience in terms

of hardware and software in EVS the

production of these computers on Wheels

is often riddled with errors and

software problems in new cars are

commonplace disappointed customers

report that even with premium models

that cost upwards of a hundred and

thirty thousand Euros the highly

developed technology sometimes acts

crazy

all new technology unproven to be

developed in a very short time the

situation the industry hasn't been and

for maybe 50 years or even longer

[Music]

electric energy electric motors and

Digital Services in the car the German

manufacturers they work very hard to get

those to take those new competencies on

board and if they can do this they will

have the better cars because they know

how to build a car is

[Music]

difficult

the temptation to Adorn oneself with

Laurels of the past remains but today

the Mythic status of the German

automobile is at stake and this is

inextricably linked to a successful

future for the German car industry

what do you think how good are German

cars really let us know in the comments

below