German Car Export Industry
While viewing the economic structure of Germany and understanding what makes up a huge chunk of its exportation and economic success, a product sector that stood out to me was cars. This is because of the common trend throughout the pasts years of this product making up one of the top percentages of exports in Germany.
When we think of German cars, we think of luxury and high quality from huge dealers in the automobile industry such as BMW and Mercedes-Benz. This reputation not only reflects the craftsmanship of German engineering but also underscores their significant contribution to the country’s economic prosperity.
Its significance in the German economy is huge especially in the past. For example, in 2003, the car sector alone amassed about 18% of German exports. This was due to an increasing progress from the 1990s where the specialization and popularity of German vehicles on the global stage. Shown on the Atlas, German export of cars totaled $137 billion making up about 6.77% of shares. Even just parts of motor vehicles themselves had a share of 3.17%. The car industry is also expected to grow at a faster rate as their export complexity rate is near 1.94 ECI. This industry continues to grow at an export rate of 12%. Overall, the growth in the global market of German vehicle exports reached a peak at 2003 at 17.89% and has been slowly decreasing since then.
Now, vehicles still make up about a rough 15% of German exports but that decrease is due to the innovation and progression of other countries vehicle industry such as China. The industry has globally become oversaturated with a vast amount of competition from new entrants and rivals. Furthermore, the Germans precision on consumer preferences in the past to create a successful and plentiful automobile industry become futile as the preferences now shift to things like electric vehicles and technology.
So, when did Germany’s car industry become so prominent in the export industry? In 1888, Bertha Benz, automotive pioneer and wife of Carl Benz, proved that the Motorwagen they had created was safe through a 194km practical drive. From then on, the era of automobiles in Germany was started and by the 1900s Benz and Cie became the world’s largest automaker. Setting the tone for the seriousness and quality of Germany’s car industry it was a straight line up in economic value from there into the 2000s to where we are now.
German traits such as Detailverliebtheit (attention to detail) and the sudden instability of the agriculture industry led to innovation and the shift to investors and entrepreneurship around the car industry. This was a trend all around Europe as countries wanted a piece of the wealth gained from the car industry and thus exports began more common.
The German auto industry has seen its share of ups and downs, with companies starting up, merging, and competing. Old rivalries, like Benz versus Daimler, led to their merger in 1926. These shifts often sparked innovation, as pioneers tinkered away to make things better leading to a constantly progressing industry of prosperity.
In Stuttgart, I hope to learn more about the history of Mercedes-Benz as we visit the museum. Researching into this product and seeing it was one of the first leading vehicles in Germany and the world has made me curious as to how this innovation led to the automobile era we are in today. I am intrigued by the brilliance and dedication of Bertha Benz and hope to get more of her story as I feel like it is overlooked in history especially as her contributions seem to be diluted behind a man’s name which is common in history. I hope to learn lots more about her and the history overall!
