Former BMW Economist: German Auto Execs are Carbon Positive Egomaniacs

"The German manufacturers have gone for faster, heavier and more expensive. We are satisfied with high-end niches and think that we have beaten off all the competition with them." Becker believes the Germans automakers have driven down an evolutionary dead end, as the world turns to cheap, fuel efficient cars. And this they did because of hubris. "There are so many egomaniacs in the German automotive industry, who would sooner put pseudo race cars onto the road than take a leading role in developing new environmentally-friendly technologies."
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EnnNorakEnnNorak - 8/14/2007 2:52:30 PM
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I agree with the author in the matter of German luxury having reached a dead end. The problem is that most luxury features have trickled down to lesser cars which is great for the consumer and cannibalizes luxury car sales. I'm dying to see the Mercedes Vision C220 Bluetec in North America.


Threepoint1415926Threepoint1415926 - 8/14/2007 3:39:57 PM
+1 Boost
I don't agree. German cars are about gluttony. And as there will always be gluttonous people on the planet, there will always be a need for someone to build them a car. The German auto scene is famous for innovation, I don't see why they cant still be just because of a green movement. Simply because their cars are fast and HEAVY now doesn't mean they wont be fast and LIGHT in the future utilizing more eco-friendly materials and processes.


motomoto - 8/14/2007 8:40:33 PM
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Of course, it's worth repeating that relatively few German cars are gluttonous -- unless you live in North America and only see the few percent of German cars that are so profitable that it is worth exporting them across a very, very expensive currency exchange.

Note also that since emissions regulations vary widely by country, and German brands tend to have a relatively greater share of the market in the Mid-East, Eastern Europe, and Africa. Hence their global carbon footprint may seem relatively oversized compared to the USA manufacturers, where even gas guzzling pickup trucks have improved their emissions in the last several years thanks to decent (though not stellar) air quality regulation.

But this isn't the point, is it? Becker notes that the German car industry is making the same mistake that the US car industry made in the 1990's: focusing on building bigger, more profitable vehicles will lead to a loss in market share in the small car market. Becker may have a point, but I think German executives realize that their core market relies heavily on their small and efficient vehicles. We just don't happen to see all the excellent Audi, BMW, Mercedes, Opel, Smart, and VW have many economy models in the USA. At some point the market for 600hp sedans and 2500kg personal vehicles will dry up, and then hopefully we'll see more vehicles like the Cayman instead of utility barges.


Threepoint1415926Threepoint1415926 - 8/15/2007 1:40:18 PM
+3 Boost
It's worth noting that you're wrong. As I understand it, upwards of 20% of BMW's and Mercedes come directly to North America. Hardly what I'd call the few leftovers that are overly profitable as you would imply. Never mind the percentage of higher end vehicles that are sold in Europe and as you mentioned, Africa and the Mid East. I would think that a significant number of those vehicles count as gluttonous.

I dont see where you found Becker likening the German auto industry to the American industry. American cars weren't profitable period and certainly not overly profitable. They were slow, unreliable pieces of crap that cost warranty money and in the end sales and customers for life. We see plenty of small, low capacity vehicles in the US from VW, Opel (saturn), Audi and BMW if still not the smallest vehicles they make. But that doesn't seem to be hurting them in sales. No, not everyone needs a 600HP car but the people who buy them will never go away. Further, the people who buy the smaller displacement German vehicles dont seem to be packing up and heading down market either. What I do see is more and more people wishing to be eco-friendly and there are plenty of ways to be so without going down market. Hardly a dead end, instead this is a new challenge. Necessity, after all, is the mother of invention.


BMW4me4everBMW4me4ever - 8/14/2007 4:18:42 PM
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psst ... diesels and hydrogen is the way of the future, not hybrids... Actually, the germans are more enviromentally friendly than anyother type of manufacturer. Look at their plants and production facilities in europe and across the world.


M53RM53R - 8/14/2007 4:23:26 PM
+1 Boost
EnnNorak, what about the other millions that want something abit more exclusive? I mean even if the camry had all the tech in mercedes, BMW, Audi, people would still buy from the german brands because they are more exclusive..


Will_Will_ - 8/14/2007 4:43:05 PM
+3 Boost
The pressure is on all automakers to go "green." Consumers today want to see more than just a fast and pretty car. They want to see fast, pretty cars that make them feel less guilty about them being fast and pretty.

The Europeans really could do more to satisfy people's needs, especially the ever-so-important North Americans. Ship us the 6- and 4-cylinder/diesel versions of all of your cars and watch the demand increase. But you know why America has never gotten cars like the S320 CDI or the 318d, because they'd be "too accessible" for the masses, which for their higher-ended models, would kill the exclusivity factor, which they believe they need in order to sell here in North America. The Euros are worried just as much about their perceived prestige as everyone else.


BMW4me4everBMW4me4ever - 8/14/2007 6:18:31 PM
+2 Boost
actually the main reason for diesels not to more prevelant in the US has to do with some states and the political stance with them. California being one of the biggest states in the US, and if not mistaken it is not legal to sell diesels there.


pushrod27pushrod27 - 8/14/2007 7:39:30 PM
-2 Boost
Where do you get these facts? I like bigger, heavier, and faster in my car. i could care less about being green, carbon emmissions, or fuel consumption. I can afford gas. I can't think of many cars that are more desirable than the S65 AMG. The Germans are on the money.


motomoto - 8/14/2007 8:57:32 PM
+2 Boost
pushrod27, you are not alone, but I'm with Will on this one.

There is no substitute for displacement ... EXCEPT EFFICIENCY. We can -- and must -- do better, because even if you can financially afford all the gasoline you want today, your kids probably will struggle to afford it in 50 years or less.

There is absolutely no reason to have an AMG with so much power that it cannot be driven without the electronic traction control nanny CONSTANTLY kicking in, cutting power so that you don't lose tire grip. Over 400hp for a public road-going car on street tires borders on ludicrous. It's way past time that customers start demanding better and more efficient transportation of all kinds.

I certainly wouldn't mind a 70mpg, 250hp Porsche. It could be done someday if engineers weren't ordered to prioritize other design goals.

Speaking of design goals: weight is out of control on ALL cars. There is no reason that ANY 5-passenger vehicle should weigh more than 1700kg, and it should be closer to 1400kg. Until auto manufacturers go on a serious diet, they only make it harder and harder for themselves to achieve decent fuel and emissions targets. They have only themselves to blame for not improving average fuel economy in the last 25 years.


S4cabriofoxoneS4cabriofoxone - 8/15/2007 1:13:16 AM
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There are so many easy substitutions that it's ridiculous.

Take, for example, cars like the Range Rover, Audi A8 and BMW 5 Series.

Right now, the main sellers of each are the HSE 4.2, 4.2 and 528/535 models, respectively.

However, substitutions: Range Rover TDV8, Audi A8 4.2TDI and BMW 530d/535d.

All of the above offer significantly improved mileage, but similar power (if not more). I am not just pushing diesels- I'm pushing the green scene in general. For me, a diesel car like the 535d or A8 TDI would make sense. They are every bit as luxurious, fun and elegant as their gasoline-powered versions. But so much more efficient! And with Bluetec particulate filters, our diesels would be that much better. Thankfully, both BMW and Audi have licensed the technology.


MunichRobMunichRob - 8/14/2007 4:56:18 PM
+1 Boost
I like their way of thinking, probably why I love their cars.


Will_Will_ - 8/14/2007 7:43:47 PM
+1 Boost
You Euros keep trying to say Americans are somehow "misinformed" and "stupid" for buying Lexus, yet it is the very brands you worship that are saying the same things about you buying their gas-guzzling cars. Not even the people of Europe drive the V8 and V12 versions of those cars, why do you Americans insist upon it, then frown upon people who want to drive a hybrid?


david999david999 - 8/15/2007 9:49:47 AM
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The bottom line is that the article points out what many have always believed, ie,
"Germans automakers have driven down an evolutionary dead end"


alfistiDKalfistiDK - 8/15/2007 1:51:48 PM
+1 Boost
u wish boy..now go back to your sandcastle


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