Car industry German automotive industry invests predominantly abroad
Since 2022, the German automotive industry has invested more money in other countries than in Germany. At that time, the ratio was 51 to 49 percent in favor of foreign countries with total expenditure of a good 89 billion euros.
18.02.2025, 12:10
SDA
One year later, the proportion of foreign investment was 53%, with total expenditure in 2023 at 99 billion euros, according to data from the German Association of the Automotive Industry (VDA). More recent data is not available. The "Frankfurter Allgemeine Zeitung" had previously reported.
"Until 2021, a slight majority of total investments still flowed to Germany, but since then it has turned in favor of foreign countries," VDA chief economist Manuel Kallweit told the FAZ. "One of the reasons for this is the inadequate location conditions: high energy prices and high bureaucratic costs."
In 2012, the German investment share was 55 percent, in 2021 it was 52 percent. The automotive industry has long criticized the conditions in Germany and warned of an exodus of industry.
VDA: You have to take care of the location
The trend is particularly clear when it comes to investments in property, plant and equipment - for example in factories. In 2012, the ratio was still almost balanced (51 percent foreign, 49 percent domestic). In 2023, the proportion of foreign investment was 62%. Only 38 percent still flowed into the German location.
There is a similar trend in investments in research and development. In 2008, German car manufacturers still invested 70 percent domestically, 15 years later it was only 53 percent. The data is based on the companies' annual reports, figures from the Federal Statistical Office, the EU Commission and the Stifterverband für die Deutsche Wissenschaft.
"It is imperative to take care of Germany as a business location so that car production and thus growth and jobs remain in Germany," said Kallweit. "There is a temptation to relocate development because of the costs. Basically, development work is easier and better if it takes place at the production site."
