Theautomotive industry in Germany is one of the largest employers in the country, with a labor force of over 857,336 (2016) working in theindustry.
Being home to themodern car, the German automobile industry is regarded as one of the most competitive and innovative in the world,[1] and has the third-highest car production in the world,[2] and seventh-highesttotal motor vehicle production. With an annual output close to four million and a 31.5% share of theEuropean Union (2017), German-designed cars won in theEuropean Car of the Year, theInternational Car of the Year, and theWorld Car of the Year annual awards the most times among all countries. TheVolkswagen Beetle andPorsche 911 took 4th and 5th places in theCar of the Century award.
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Motor-car pioneersKarl Benz (who later went on to start Mercedes-Benz) andNicolaus Otto developed four-strokeinternal combustion engines in the late 1870s; Benz fitted his design to a coach in 1887, which led to the modern-day motor car. By 1901, Germany was producing about 900 cars a year.[3] In 1926Daimler-Benz formed from the predecessor companies ofKarl Benz andGottlieb Daimler; it produced cars under the marque ofMercedes-Benz.BMW, though founded in 1916, didn't start auto production until 1928.
AmericaneconomistRobert A. Brady extensively documented therationalization movement that shaped German industry in the 1920s, and although his general model of the movement applied to the automotive industry, the sector was in poor health in the later years of the 1918-1933Weimar Republic. The slow development of the German automotive industry left the German market open for major American auto-manufacturers such asGeneral Motors (which took over German companyOpel in 1929) and theFord Motor Company (which maintained the successful German subsidiaryFord-Werke, beginning in 1925).[4]
The collapse of the global economy during theGreat Depression in the early 1930s plunged Germany's auto industry into a severe crisis. While eighty-six auto companies had existed in Germany during the 1920s, barely twelve survived the depression, includingDaimler-Benz,Opel andFord's factory inCologne. Four of the country's major car manufacturers —Horch,Dampf Kraft Wagen (DKW),Wanderer andAudi — formed a joint venture known as theAuto Union in 1932, which would play a leading role in Germany's comeback from the depression.[5]
The turnabout for the German motor industry came about in the mid-1930s following the election of theNazi Party to power in 1933. The Nazis instituted a policy known asMotorisierung [de] ("motorization"), a transport policy whichAdolf Hitler himself considered a key element of attempts to legitimise the Nazi government by raising the people'sstandard of living. In addition to development and extensions of majorhighway schemes (which saw the completion of the firstAutobahn in 1935), theVolkswagen project aimed to design and construct a robust but inexpensive "people's car", the product of which was theVolkswagen Beetle, presented in 1937. A new city (known asWolfsburg from 1945) grew up around the Volkswagen factory to house its huge workforce,[4] but Volkswagen production switched to military output in 1940.[6]
By the end ofWorld War II, most of the auto factories had been destroyed or badly damaged. In addition, the eastern part of Germany was under control of theSoviet Union, which dismantled much of the machinery that was left and sent it back to theSoviet Union as war reparations. Some manufacturers, such asMaybach andAdler (automobile), started up again, but did not continue making passenger cars. TheVolkswagen production facility inWolfsburg continued making theVolkswagen Beetle (Type 1) in 1945, a car which it had intended to make prior to the war (under the name of KdF-Wagen), except that the factory was converted to military truck production during the war. By 1955 VW had made one millionVolkswagen Beetles, and by 1965 had built 10 million, as it gained popularity on export markets as well as on the home market. Other auto manufacturers rebuilt their plants and slowly resumed production, with initial models mostly based on pre-war designs.Mercedes-Benz resumed production in 1946 with the pre-war–designed170 series. In 1951 they introduced the220series, which came with a more modern engine, and the300 series.Opel revived the pre-war carsOpel Olympia in 1947 and theOpel Kapitän in 1948. (Toolings for theOpel Kadett were taken by the Soviets and used to make theMoskvitch 400-420., which had resumed production of trucks in 1945, began building the pre-warFord Taunus in 1948.Porsche began production of theirPorsche 356 sports car in 1948, and replaced it with their long-livedPorsche 911 in 1964 (which remains in production more than 50 years and several incarnations later).
Borgward began production in 1949, andGoliath,Lloyd,Gutbrod, andAuto Union (DKW) began in 1950.BMW's first cars after the war were the luxuriousBMW 501 andBMW 502 in 1952. In 1957NSU Motorenwerke re-entered the car market.[7][8]
Automobile manufacturers inEast Germany after the war includedEisenacher Motorenwerk (EMW), which also made theWartburg, andVEB Sachsenring Automobilwerke Zwickau, which made theIFA F8 (derived from theDKW F8) and theTrabant. East Germany's status as a communist country was reflecting in the relatively primitive design and refinement of these cars, although they both continued in production until the early 1990s, shortly after thefall of the communist rule and theGerman reunification.
Initial production by EMW after the war were models that were essentially pre-warBMW 326 andBMW 327 models, as the plant inEisenach was formerly owned by BMW.
During the mid-to-late 1950s, theBubble car became popular. BMW was the largest maker, with theBMW Isetta andBMW 600. Other makes included theMesserschmitt KR175 andKR200, theHeinkel Kabine, and theZündapp Janus.Microcars such as theGlasGoggomobile,BMW 700, andLloyd 600 also were popular. However, the "Bubble car" concept had been abandoned by 1970.
In the late-1950s, BMW developed financial difficulties and control of the company was acquired by theQuandt family. BMW acquiredGlas in 1966. In 1961, theBorgward auto group, including Goliath and Lloyd went out of business. In 1958 Auto Union was acquired byDaimler, but then, in turn, it was sold in stages from 1964 to 1966 toVolkswagen (at which time the DKW marque was ended and theAudi name was resurrected). In 1969, Volkswagen AG acquiredNSU Motorenwerke (developer of theWankel engine) and merged it with Auto Union, but the NSU nameplate disappeared by 1977 when production of theRo80 rotary-engine saloon (European Car of the Year on its launch 10 years earlier) was stopped largely due to disappointing sales and a poor reputation for reliability.
Ford merged itsGerman andBritish operations in 1967, with the intention of producing identical cars at its German and British factories. Ford had also opened a factory atGenk,Belgium, in 1963. In 1976, it also opened a factory inValencia,Spain, where production of the newFiesta supermini (the first Ford of this size to be built in any country) was concentrated. TheEscort, launched in 1967, was the first new Ford to be produced at both the German and British factories. At the beginning of 1969, Ford launched a new sporting coupe, theCapri, which like the Escort was produced throughout Europe. TheTaunus of 1970 made use of the same basic design as the BritishCortina MK3, but had slightly different exterior styling, although those styling differences were ironed out with the launch of the 1976 Taunus. Ford's new flagship model, theGranada, was built in Britain, Germany and Spain from the beginning of 1972, although British production was withdrawn after a few years.
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Volkswagen was faced with major financial difficulties in the early 1970s; with its aging Beetle still selling strongly all over the world but its newer models had been less successful. However, the company then enjoyed a revival with the arrival of the popularPassat in 1973,Golf in 1974 andPolo in 1975 - all of these cars featured the new front-wheel drive hatchback layout which was enjoying a rise in popularity acrossEurope after first being patented byRenault ofFrance with theR16 in 1965. The Polo was Volkswagen's new entry-level model, and was aimed directly at modern small hatchbacks like theFiat 127 andRenault 5. The mid-range Golf was seen as the car to eventually replace the Beetle, and was easily the first popular hatchback of this size in Europe, leading to most leading carmakers having a similar-sized hatchback by the early 1980s. Production of the Beetle finished in Germany in 1978, although it continued to be produced inMexico andBrazil until 2003, with a small number of models being imported to Germany and the rest ofEurope during its final 25 years. The Passat was marketed as a more advanced alternative to traditional larger saloon cars like theFord Taunus/Cortina,Opel Ascona (sold in Britain from 1975 as theVauxhall Cavalier) and theRenault 12.
The Scirocco coupe of 1974 was also a success in the smaller sports car market, competing against the likes of theFord Capri andOpel Manta. Its partner company Audi also enjoyed an upturn thanks to the success of its 100 range (launched in 1968) and the smaller 80 (launched in 1972 and voted European Car of the Year). Both of the new Audi models featured front-wheel drive. The Volkswagen Polo was in fact a rebadged version of theAudi 50, but the Audi original was a slower seller than the Volkswagen that it spawned and was only available in certain markets.
Volkswagen and Audi both enjoyed a growing rise in popularity in overseas markets during the 1970s and this continued throughout the 1980s. Audi launched a well-received large saloon model, theAudi 100, in 1968, and followed this four years later with the smallerAudi 80, winner of theEuropean Car of the Year award for 1973. In 1980, Audi moved into the sports car market with its front-wheel driveCoupe and the four-wheel drive, high-performance version, theQuattro. The Quattro four-wheel drive system was later adopted on Audi's saloon models.
During the 1970s and early 1980s,General Motors integrated Opel with the BritishVauxhall brand so that designs were shared with the only difference being the names. Faced with fierce competition from up-to-date designs from Volkswagen, General Motors moved to a front-wheel drive hatchback in 1979 with the latest version of the Opel Kadett, followed in 1981 by new Ascona (which retained the Vauxhall Cavalier name for the British market). In 1982 it opened a new plantZaragoza,Spain, to produce the newOpel Corsa supermini; this car was later imported to Britain as theVauxhall Nova. Production of the Kadett/Astra and Ascona/Cavalier models was divided between factories in Germany, Belgium, Spain and Britain. TheVauxhall Carlton was briefly built in Britain from its 1978 launch, but within a few years production was fully concentrated in Germany, where it was built alongside the identicalOpel Rekord.
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The final version of the Opel Kadett was votedEuropean Car of the Year on its launch in 1984, as was the Opel Rekord's successor – theOmega – two years afterwards. The Ascona's successor, theVectra (still the Vauxhall Cavalier in Britain), was launched in 1988, but missed out of the European Car of the Year accolade to theFiat Tipo.
With the radical changes in car design that took place throughout the 1970s and into the 1980s, Ford responded by substantially altering its model line-up. After launching the Fiesta supermini in 1976, it switched to front-wheel drive and a hatchback on the MK3Escort on its launch in 1980, and opted to replace the Taunus/Cortina with theSierra in 1982 - abandoning the hugely popular saloon format for an aerodynamic hatchback, although a saloon version was added in 1987. In 1983, Ford had also responded to the continuing demand for family saloons by launching theOrion, the saloon version of the Escort. TheScorpio replaced theGranada as Ford's European flagship in 1985, and was solely produced at theCologne plant in Germany. The Scorpio was originally available only as a hatchback, and despite its popularity, Ford eventually expanded the Scorpio range by launching a saloon model in 1990 and an estate model in 1992. The declining demand for sporting coupes led to Ford's decision not to directly replace the Capri, which was discontinued after 1986.
After its rejuvenation during the 1970s, VW modernised its model ranges during the first half of the 1980s and continued to enjoy strong sales in Germany and most other European markets. The Polo, Passat and Scirocco all entered their second generation during 1981, and the MK2 Golf was launched in 1983. A saloon version of the MK1 Golf, theJetta, had been available since 1979, and the MK2 Jetta was launched in 1984. 1988 saw the launch of the MK3 Passat and a new coupe, theCorrado, which was produced alongside the Scirocco until the older car's demise in 1992.
The VW Polo was updated in 1990, an all-new model finally arriving in 1994, and the MK3 Golf was votedEuropean Car of the Year shortly after its launch in 1991. The saloon version of the MK3 Golf, theVento, was launched in 1992. The Passat was updated in 1993 before an all-new model was launched in 1996. The Corrado was discontinued in 1996 without an immediate replacement. VW moved into the MPV market with the Sharan in 1995, built inPortugal as part of a venture with Ford, which produced the identical Galaxy. A new Beetle, with front-wheel drive and a front-mounted engine, was launched in 1998, but like the later versions of the original model it was produced inMexico rather than Germany. The MK4 Golf was launched in late 1997, and joined a year later by a saloon version, theBora.
BMW and Mercedes-Benz remained committed to rear-wheel drive on its saloons and booted coupes during these years. BMW, however, developed its model ranges more comprehensively in the 1980s and early 1990s. The originalBMW 3 Series, launched in 1975, was sold as a two-door saloon or cabriolet. The second generation model launched in 1982, however, was eventually available also as a four-door saloon and five-door estate, and during the 1990s the third generation model range eventually included a three-door hatchback as well. TheBMW 5 Series, the mid-range model launched in 1972, was only sold as a four-door saloon for its first two generations, but a third generation model was available as an estate from 1991.
The West of Germany was far more technically advanced in comparison with the East (more than 4.5 million against 200,000 annual production of auto vehicles in the 1980s), with the divide ending withGerman reunification in 1990.
During the 1980s and 1990s, the German auto industry engaged in major acquisitions and international expansion all over the world. Besides of direct export, German manufacturers found or bought plants in European, Asian, Latin American countries and in theUnited States even. Auto industry ofMexico,Brazil,China,Turkey, some post-socialist East European countries gained by German investments in a significant share.
Volkswagen set up a joint venture withShanghai Automotive Industry Corporation in 1984 (namedShanghai Volkswagen Automotive), and in 1990 establishedFAW-Volkswagen to produce VWs and Audis in China. VW also acquiredSEAT ofSpain in 1986 andŠkoda ofCzechoslovakia in 1991, improving the model ranges of these manufacturers and helping increase their market share significantly across Europe. Volkswagen had even shifted Polo production to a SEAT factory in Spain after its acquisition of SEAT, and the 1993SEAT Ibiza formed the basis for the following year's new Polo.
VW also made use of its components across the different marques; for instance, by the year 2000, thefloorplan of the Volkswagen Golf for instance had spawned theAudi A3,Audi TT,SEAT Toledo,Seat Leon,Skoda Octavia andVolkswagen Bora.
By the end of the 1990s, VW moved into the luxury and supercar end of the market and acquiredBentley of Britain and theBugatti andLamborghini marques fromItaly.
Ford had concentratedSierra production in Belgium rather than Germany and Britain from the end of the 1980s, and its successor - theMondeo - was solely produced in Belgium when it went into production around the end of 1992. The Escort remained in production throughout Europe until 2000, although its successor, theFocus, launched in 1998, was only produced in Germany for European buyers. TheScorpio was discontinued in 1998 and not directly replaced, with Ford instead directing potential Scorpio buyers to high-specification versions of the smaller Mondeo. The Scorpio's demise occurred around the same time that Ford took overVolvo, which already had a strong presence in the executive car market, while Ford had taken over British luxury carmakerJaguar in 1989 and was about to launch theJaguar S-Type.
At the beginning of 1990s, Ford and Volkswagen agreed to a venture to produce an MPV together at the same factory with the same basic design. The result of this venture was theFord Galaxy andVolkswagen Sharan, but these vehicles were produced inPortugal rather than Germany from their launch in 1995. They were joined a year later by theSEAT Alhambra.
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BMW acquired the BritishRover Group in 1994, but large losses led to its sale in 2000. However, BMW retained theMini (marque) name for a line of new cars, all built in Britain from 2001. During the 1990s, BMW opened a production facility forSUVs inSpartanburg County, South Carolina. BMW also acquired theRolls-Royce Motor Cars name, effective as of 2003, and in the same year established a joint venture in China namedBMW Brilliance. Daimler-Benz entered into what was initially called a "merger of equals" withChrysler Corporation in 1998. However, cultural differences and operating losses led to its dissolution in 2007, although Daimler-Benz kept Chrysler's Chinese joint venture, renamedBeijing Benz. The company also launched theSmart in 1998 and relaunched theMaybach brand in 2002. In addition, during the 1990s they opened a production facility for SUVs inTuscaloosa County, Alabama.[12][13][14]
On 5 July 2012, Volkswagen AG announced a deal with Porsche resulting in VW's full ownership of Porsche on 1 August 2012. The deal was classified as a restructuring rather than a takeover due to the transfer of a single share as part of the deal. Volkswagen AG paid Porsche shareholders $5.61 billion for the remaining 50.1% it did not own.[15][16]
Currently, five German companies and seven marques dominate the automotive industry in the country:Volkswagen (and subsidiariesAudi andPorsche),BMW,Daimler,Opel andFord-Werke GmbH. Nearly six million vehicles were produced in Germany in 2014 though that fell to 3.7 million by 2020, and approximately 5.5 million are produced overseas by German brands.[17] Alongside theUnited States,China andJapan, Germany is one of the top 4 automobile manufacturers in the world.[citation needed] The Volkswagen Group is one of the three biggest automotive companies in the world (along withToyota andGeneral Motors).
TheChevrolet Volt and itsGM Voltec powertrain Technology were invented and developed first and foremost by the former GermanOpel engineer Frank Weber and some of the most important parts of the development of GM's electric vehicles is done in Germany.[18][needs update]
In November 2019Tesla Inc. announced the construction of its first European "Gigafactory" (a car battery production facility, as referred to by Tesla CEOElon Musk) inGrünheide nearBerlin. It will initially have over 4,000 employees.[19]
All new automobiles sold in Germany must bezero-emission vehicles from 2035.[20][21] In 2024, Volkswagen announced they would make a joint venture with electric car makerRivian, a competitor of Tesla.[22]
Automotive plants in Germany:[23]
[...] from 1940 on, the assembly lines at Wolfsburg were producing jeeps [Kübelwagens ], the Volkswagen's military brother.
Top10PEVs2016 was invoked but never defined (see thehelp page).BMWi3Top2014 was invoked but never defined (see thehelp page).Top2015Global was invoked but never defined (see thehelp page).| By country |
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