Kyiv: It is not clear if Germany’s recent economic failures are a one-time or longer occurrence caused by structural problems, especially in the automotive industry. This was stated by the representative of the European Central Bank Ewald Nowotny.
In the monthly economic report, Bundesbank said last month that the dominant auto industry in Germany may take longer than it was thought to recover from the fall, which affects the growth of the euro zone's largest economy.
“The most important economic issues for Europe are either a one-time slowdown or structural factors behind it. The fear is that in the automotive industry we have long-term changes that particularly affect Germany,” said Nowotny.
It is known that in an effort to adapt to new emission test standards, automobile production in Germany declined in the third quarter.
“If people postpone buying a car for only half a year, this will lead to a significant drop in demand. There would be long-term and dramatic consequences if there were real structural destruction of the economy oriented to export and engineering. Germany can become vulnerable,” Nowotny later explained.
We recall that the company Tesla from January 14, ceases sales of electric vehicles Model S and Model X with a battery at 75 kW/h, which were the most budget models in the line.