THE GERMAN AUTOMOTIVE INDUSTRY IN AGE OF GLOBALISATION

Abstract

The article discusses prospects of Germany as an automaking location and two pillar of the globalisation strategy of German auto industry - localising production and exports. In 2015 the number of cars manufactured byGerman firms in foreign countries climbed to more than 9,45 million units - an increase of 145% compared withthe level in 2000. By contrast, domestic car output in 2015 (5,7 million) was just 6,5% higher than 2000. Apart from localising production, the second pillar of the globalisation strategy is exports. In 2015, over 77% of all the cars manufactured in Germany were exported. Out of the major sectors the automotive industry reported the highest export in 2014 (+6,5%) and in 2015 (+2%). Auto industry exports to Russia in 2014 fell in 31,5%. This was already the second sharp decline in succession (2013: - 14%). In the space of one year Russia has slipped the rankings of the most important foreign markets for the German automotive industry from the 5th place to the 10th. But the demand for cars in the Germany’s biggest import markets is increasingly being met the local facilities. The differences between the German automotive industry and the automotive industry in Germany will be continue to expand in the coming years. Expansion abroad does not have to be the detriment of Germany as an automaking location. Germany does posses impressive advantages. The slogan «Made in Germany» is one element of the success of German carmakers.