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From Mercedes to Volkswagen: Which pioneer changed the history of modern automobiles?
Germany's automotive industry is one of the country's largest employers, with a workforce of 857,336 people in 2016. This legacy has made Germany the birthplace of modern automobiles and is considered one of the most competitive and innovative automotive industries in the world. Germany ranks third in global automobile manufacturing and fourth in total vehicle production. Its annual output in 2017 was close to six million vehicles, accounting for 31.5% of the EU market. Cars designed in Germany have won the "European Car of the Year", "International Car of the Year" and "Global Car of the Year" awards more often than any other country. Its representative products such as the Volkswagen Beetle (Beetle) and Porsche 911 were also selected in the "Car of the Century" respectively. Ranked fourth and fifth.
The origin of history
The history of automobiles dates back to the late 19th century, when pioneers such as Karl Benz and Nicolaus Otto developed the four-stroke internal combustion engine in the late 1870s. Benz mounted his design on a horse-drawn carriage, an innovation that gave birth to the modern automobile. By 1901, Germany was producing approximately 900 cars per year. In 1926, Daimler-Benz was formed from the merger of the predecessor companies of Carl Benz and Gottlieb Daimler, and was renamed Mercedes-Benz. Become a leader in the automobile manufacturing industry at that time.
"The theory and practice of the German automobile industry gradually matured in the 1920s, but with the economic downturn, the industry suffered heavy losses."
American economist Robert A. Brady has documented in detail the rational movement that affected the German automobile industry, yet the industry was in poor shape at the end of the Weimar Republic from 1918 to 1933. This slow development has left the market occupied by large American automakers such as General Motors and Ford Motor Company. These companies' presence in the German market grew, especially with General Motors' acquisition of the German company Opel in 1929.
Economic Crisis and Rise
The global economy collapsed during the Great Depression of the 1930s, and Germany's automobile industry fell into a serious crisis. The German auto industry, which once had 86 companies in the 1920s, had only 12 survivors by the end of the Great Depression, including Daimler-Benz, Opel and Ford's Cologne plant. In 1932, Germany's four major automobile companies—Horch, DKW (Dampf Kraft Wagen), Wanderer, and Audi—formed a consortium called the Auto Union. , becoming the main driving force behind Germany's recovery from the economic crisis.
"After the Nazi Party came to power in 1933, the German automobile industry ushered in major policy changes, marking a policy reshaping of the national automobile industry."
As the Nazi Party came to power, it launched the policy of "Motorisierung", which Hitler regarded as an important means to improve people's livelihood. This led to the construction of major highways and the further development of the Volkswagen program to design and build a strong and cheap "people's car" that would eventually become the Volkswagen Beetle, launched in 1937.
Post-war reconstruction and development
After World War II, most automobile factories were destroyed or severely damaged, and East Germany was also under Soviet control. Many machines were dismantled and shipped back to the Soviet Union as war compensation. Although Volkswagen continued production despite the huge post-war threat, in the face of brutal competition, other manufacturers such as Mercedes-Benz and BMW also began to rebuild their factories and gradually resumed production. By 1955, Volkswagen's Beetle production reached the milestone of one million units, and in 1965 it exceeded 10 million units.
"The trauma of World War II did not inhibit the rebirth of the German automobile industry, but instead became a new starting point."
As time went by, German car brands continued to introduce new products. Facing the economic difficulties in the 1970s, Volkswagen changed its chips and launched new rear-wheel drive small cars such as Passat and Golf, which disrupted the entire market. Influence. In the 1980s, Ford Motor and General Motors continued to introduce new models, changing consumer choices.
Enter the 21st century
In the 21st century, the German automobile industry continued to expand, and companies such as BMW and Daimler continued to improve their competitiveness in the market through international mergers and acquisitions and technological innovation. Through the wholly-owned acquisition of Porsche, Volkswagen Group deeply integrates its brands and targets the high-end market. With the rise of electric vehicles and new mobility technologies, German automakers such as Tesla have further consolidated their market position in electric vehicles.
As the German automobile industry has an increasing global influence, it is conceivable that as the industry continues to change in the future, how will these long-standing brands face challenges again in the reform?
