German Car: Digital, not Diesel

Rolands Petersons (Latvia), Member of the Board of Norman Logistics GmbH:

This decade the representatives of automotive industry have worked hard in order they products would become "smart", saturated technologically and would attract "the Playstation generation" – people, according whose opinion, a car is one more IT "gadget" that quickly adapts to its user’s desires and habits.

"Mercedes" has promised that already in this decade it will offer at the market its "driverless cars" – by supporting also this project Germany rapidly develops its 5G infrastructure. BMW develops technologies that enable automobiles to park themselves at mechanized/computerized many-storied parking lots – multistorey car parks.

In the global market it is possible to observe the increase of demand for automobiles with electric engine. During the next decade their proportion in all market of new automobiles will reach 25%. (At present even in the most advanced countries it is approximately 2%.) It determined by consumers’ attitude towards an automobile as a gadget and by their illusions – or turning out –, that in such manner there has been achieved "nature-friendly" consumption, and by the EU requirement to lower the level of CO2 emission. (European Commission, in its recent report, acknowledged that the industry successfully adjusts to the standards.) Already now the representatives of German automotive industry offer more than 30 different electric automobiles, but it is planned that in 2021 their number will exceed a hundred.

German automotive industry forecasts in good time and prepares for any challenge in global market. Everybody employed in the automotive industry, the German politicians and all society is aware of the special significance of industry for the German economy and its leading role in export. In this industry the competition has a global scale and there are always strong competitors – there is no place for blind self-satisfaction created by yesterday’s fame. Tomorrow should be always overtaken – the manufacturers shall be always ready for changes in technologies, consumers’ habits, laws protecting environment.

The contribution of automotive industry to the total gross value added of Germany is 4.5%. German export of automobiles in 2018 was worth 70 billion euro, it constituted 55% of all total EU export in this segment of goods. The auto manufacturers and suppliers employed in the country more than 820 thousand workers (December 2018). However, the work of the thousands of Germans directly depends on this industry – these are people working at autoshops, technicians of the workshops for the repair of automobiles, staff of approximately 15 thousand fuel filling stations. The analysts of German parliament calculated (2017) that in the country there are in total 2.15 millions of "car-dependent jobs" – there are approximately 5% of all workers are employed there.

In 2018 the companies of German automotive industry reported that in the first half of the year their sale has reached the record – even Volkswagen concern had fully recovered from its 2015 "emission scandal" by selling more than 3 millions of automobiles. On the background of this achievement, the braking of sale that was faced at the turn of 2018 and 2019 – due to then actual global economic problems, consumption taxes determined in the countries and the threats of trade war between US and China – seems self-evident insignificant correction of the development of industry under the influence of external circumstances. (The macroeconomic expert of SEB bank Dainis Gaspuitis (Gašpuitis) indicated for the newspaper Dienas bizness that the available calculations show – taking into consideration the affect on the supply chains, the present process has reduced global GDP by 0.2%.) It is nothing extraordinary or even tragic – as it was despairingly shown by some germanphobe economic analysts.

German industry, while planning its future, focuses on three main tasks – automobiles with electric engines; smart and driverless automobiles; adjustment to the changes of drivers’ habits – instead of purchasing a vehicle and becoming its owner, to rent it, to use as a joint property, to use ridesharing applications.

The representatives of automotive industry are also aware that there are still great expansion opportunities in the global market – in 2030 it is planned to sell globally 123 millions of different automobiles. (The German Times, 05/12/2018). This also means the increase by 30% in comparison to the previous year, when the output constituted 70.5 millions of cars and 25.1 millions of trucks. The Asian market is still not saturated, the population’s purchasing capacity increases there – and that’s the guarantee for the stable industrial development both in Germany and other countries.

About the company

Norman Logistics GmbH is based in Dortmund, Germany. This company operates in Europe and also in many other major logistics centers in the world. The core business is a cargo brokerage, mainly marine cargo. Norman Logistics customers are significant EU companies which his production transport throughout marine cargo. And service providers are medium or large shipping companies. The mission of Norman Logistics is convenient logistics and one point service for the same price, individual and best quality approach.

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