German luxury cars may be unpopular with some consumers, but their production in domestic factories helps support both the country’s automakers and well-paid industrial jobs, according to the article. It argues that premium models remain among the vehicles still manufactured in Germany, while many people would prefer manufacturers to offer more small cars priced below €20,000.
The article questions whether such low prices are compatible with German production costs. It compares the Polo’s starting price of just over €20,000 with average hourly labor costs of €31 in Spain, where it is currently built, and nearly €65 in Germany. It also points to labor costs below €14 an hour in Romania, as well as production in Turkey and emerging Asian economies.
In the article’s view, matching the price of small cars produced in lower-cost countries is not feasible in Germany while wages and social contributions are higher and employees work fewer hours over the week and year. It argues that the economics are more viable for luxury cars costing €100,000 or more, even though those vehicles are often viewed unfavorably. Some local authorities, it says, are considering measures such as delayed vehicle registration and higher parking fees.
The piece argues that Germany should preserve a strong domestic market for premium cars and avoid policies that undermine it. It also says the country should retain the appeal of its motorways without general speed limits for foreign customers and try to prevent further production shifts abroad. The article warns that rejecting luxury cars could mean accepting the relocation of German auto jobs to countries including Spain and Hungary.
Sources: FAZ.