Home › DW       12.07.2026

How VW's crisis could reshape the global car industry | The Dip

Volkswagen's reported plans for deeper job cuts and possible German plant closures have turned into a warning sign for the wider car industry. The company is being hit by weaker demand, high costs, US tariffs and tougher competition from Chinese electric carmakers. Consultant Manuel Vermeer warns that Germany and Europe must come up with a joint stance, both with and against China, or risk declining even further.

Chapters 00:00 Why Volkswagen's crisis matters 02:16 Germany's confidence turns to fear 03:34 Is Volkswagen facing a do-or-die moment? 04:20 How Volkswagen underestimated China 06:20 How Asia now views German industry 07:44 Chinese companies move into Europe 08:45 Is the crisis Germany's fault—or Volkswagen's? 10:10 The threat to Germany's Mittelstand 12:24 Can Europe compete without sacrificing its model? 14:37 German carmakers' new dependence on China 15:38 Can Germany find an industry China cannot catch? 16:21 Cooperation with China versus decoupling 18:10 Where Volkswagen could be in five years 19:58 Is closer cooperation with China naive? 21:52 Volkswagen's Chinese-technology future

#Germany #China #AutoIndustry #DWdip #DWbusiness

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