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Green Collapse: One-Third Of Germany’s Auto Suppliers Consider Moving Abroad

by Pierre Gosselin
November 09, 2023, 11:03 AM
in News and Opinion
Reading Time: 3 mins read
A A
3

german car factoryNo surprise: despite all the milk-and-honey promises of a green economy, Germany’s blind rush away from fossil fuel over to “green energies” is becoming a nightmare of inflation and economic decline.

Today Blackout News reports that one-third of all German automotive suppliers are considering relocating investments abroad. Germany is no longer an attractive place for industry. [emphasis, links added]

The automotive industry, once the backbone of Germany’s prosperity, is now shattering – or more accurately said: is being transplanted abroad.

High energy costs, bureaucratic hurdles

“According to a survey by the German Association of the Automotive Industry (VDA), one in three automotive suppliers is considering relocating planned investments from Germany to other countries,” reports Blackout News. “There are many reasons for this, ranging from bureaucratic hurdles to high energy costs.”

Woes started with the green energy revolution

Let’s not kid ourselves. The vast majority of the problems are self-made with the roots going back decades beginning with the Green-Socialist government, led by Chancellor Gerhard Schroder, elected in 1998.

The ‘Energiewende‘ (transition to green energies) was soon ushered in as mandatory feed-in tariffs for renewable energies were enacted.

In 2011, the transition to green energies got a huge boost from Angela Merkel’s conservative CDU-led government when it decided to go along and exit from nuclear power as a reaction to the Fukushima disaster in Japan.

As nuclear power plants were shut down over the following years, and more unstable wind and solar energy capacity were added to the power grid, electricity prices skyrocketed and quickly became among the world’s highest.

The resulting unstable power grid only compounded the competitive woes of the German industry.

Clueless green economics minister

Next, under the current Socialist-Green government, led by its incompetent economic Minister, Robert Habeck – who has no formal training in business, finance, or economics whatsoever – Germany moved to exit coal and natural gas power.

Electricity prices skyrocketed again as a result:

Electricity prices for German consumers from 2000 to 2022 (euro cents/kWh). Source: BDEW

Companies are leaving

Moreover: “The high administrative costs and regulatory requirements make it difficult for many companies to invest in Germany,” adds Blackout News.

“The survey shows that the main targets for investment abroad are primarily other EU countries, followed by Asia and the USA. For some companies, however, relocating investments is not the only option. Around 14 percent of those surveyed stated that they would cancel planned investments altogether.”

To make things even worse, beginning early next year the bumbling German government will push through higher CO2 taxes and expanded highway tolls, so don’t expect inflation or the German economic situation to improve much, if at all.

Read more at No Tricks Zone

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Comments 3

  1. David Lewis says:
    2 years ago

    Loss of industry and the related jobs due to increased energy costs driven by action on climate change has been going on for a long time. Fifteen years ago Europeans had invented a word for it, “Carbon Leak.” Those of us who are conservative have predicted such results. What is unbelievable is those in power can’t see the “Carbon Leak” caused by their policies even as it happens right before their eyes.

  2. Sonnyhill says:
    2 years ago

    Maybe 20 years ago, our local conservation authority forbade any tree cutting in the thousands of acres of forest under their management. County council was under financial pressure and decided to drastically cut the department’s budget. Layoffs were coming. All of the sudden, loggers were let in to “manage” the trees. Logs brought in enough money to save government jobs.
    Today, voters are grumpy. Carbon taxes bite into their house hold budgets. Incumbent politicians fear for their jobs, especially Trudeau, whose priorities don’t include a healthy economy. His career prospects outside of Ottawa look bleak, his Liberal party wants him to step down. He’s going to walk the plank rather than lose face in front of his globalist buddies.

  3. Charles Wardrop says:
    2 years ago

    Russian agents in the capitals of Europe and the US?

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