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Saturday, February 8, 2020

Does Germany Want to Destroy its Auto manufacturing Industry to Cut CO2 Emissions ?







Germany’s 
Real GDP 
grew by only 
+0.6% in 2019, 
+1.5% in 2018, and 
+2.2% in 2017.

New European Union 
Auto Emissions Rules:
The average new car 
registered in the EU 
must not emit 
more than 95 grams 
of CO2 per kilometer, 

That requires 
fuel consumption 
of around 4.1 liters 
of gasoline, 
or 3.6 liters 
of diesel fuel 
per 100 kilometers. 

( That’s 1.1 gallons 
of gasoline per 62.2 miles, 
or 60 miles per gallon ! )

60 miles per gallon !!!

Manufacturers can sell 
some vehicled with
more "pollution",
offset by low or 
zero emission models,
to avoid large fines.



Volkmar Dennernew, 
CEO of Bosch, 
a major automotive 
supplier, said,  
“EU emission rules 
mean the end of the 
classic internal combustion 
engine with corresponding 
effects on employment 
in the companies concerned.” 

He announced 3,500 job cuts.

McKinsey and Company 
predicted that 2.2 million EVs 
must be sold in Germany 
in 2021 to meet CO2 targets. 

No more than 50,000 
were sold in 2019 

Going from 
50,000 in 2019, 
to 2.2 million 
EVs in 2021, 
is VERY unlikely.

Even if 
2.2 million 
EVs could be 
manufactured, 
would Germans
want to buy 
anywhere close 
to 2.2 million ?

Germany employs 
840,000 people in 
auto manufacturing, 
of which about 
200,000 people
build power trains.

Electric vehicle 
power trains 
are much simpler, 
and would require 
far fewer than 
200,000 people.



In 2018, German 
auto manufacturers 
sold 3.5 million vehicles 
in Germany, and another 
1.4 million in the U.S.
 -- 500,000 sold 
in the U.S.
were imported 
from Germany.

In 2018, about 25% 
of made in Germany 
automobiles were sold 
in the United States.

People in the U.S.
don't have much 
interest in buying
EVs.

We do want German
internal combustion
engine vehicles.

Making those AND
EVs in Germany
would cause 
a big cost and 
complexity penalty 
for auto manufacturing
within Germany.