German Car Manufacturing in 2016-17: Developing circumstances require dynamic response

German Car Manufacturing in 2016-17: Developing circumstances require dynamic response

Code: ML-ML00022-043 | Published: Aug-2016 | Pages: 18 | MarketLine
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The German car manufacturing industry has been hit by several major incidents in 2015/16, including an emissions scandal involving Volkswagen, slowing growth in the Chinese market, Britain which is Germanys largest car export market voting for Brexit, and a potential Trump run US post the elections in November 2016. Increased protectionism and slow growth in the worlds largest car market can have a serious impact on German car manufacturers. It is not all doom and gloom for the industry though as falling crude oil prices and fast growing car markets in other Asian countries should prompt a dynamic response from German car manufacturers, wherein they should target new markets and cater to their demands and needs to replace any real and potential losses that have or are to be suffered in Germanys more traditional car export markets.

Key Findings
- Analyzes the key events that are effecting German car manufacturers in 2015/16

- Explores the ways in which German car manufacturers can respond to these events in 2016/17.

Reasons To Buy
What are the events affecting German car manufacturers in 2015/16?
How should German car manufacturers react to these events?
Which markets should German car manufacturers target as growth in the Chinese market slows down?

Key Highlights
- The VW Group which is Germany and Europes largest car maker was found in September 2015 to have attached a "defeat device" to many of the vehicles it was selling. This software was able to detect when the car was being tested, and subsequently changed the vehicles performance levels in order to improve emissions test results.

- According to some reports around 7 million more cars are said to have been sold in the global market than if the oil prices had remained stagnant.

- German car manufacturers will also have to show some dynamism in the Asian car market, and might have to drop their prices in the Chinese market in order to remain competitive with the local brands who have witnessed a rise in popularity as Chinese GDP growth rates have fallen.

Table of Contents

Major events affecting the German car manufacturing industry
Protectionism on the rise - possibility of greater barriers to trade increase in post Brexit Europe.
Demand for stricter emissions tests fails in Euro Parliament - VW however still facing tough times post the emissions scandal
Falling crude oil prices should boost car sales.
Stagnating growth in worlds largest car market China, car manufacturers should target other Asian countries with fast growing car markets.
Increased legal and financial barriers a serious threat whilst falling crude oil prices and a more lenient emissions testing method should boost car sales.
German manufacturers will have to adopt dynamic approach to face challenges in 2016-17.
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List of Tables

Table 1: Top 5 German passenger car export destinations
Table 2: Top 5 car manufacturers by market share of new registered passenger cars - Europe
Table 3: New passenger car registrations by continent

List of Figures

Figure 1: Britain votes for Brexit
Figure 2: Crude Oil Prices

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