From "Beetle" to Software: How Germany Built Its Big Three Auto Manufacturers and Then Confronted the China and Electric Vehicle Challenge

Major German automakers Volkswagen, Mercedes-Benz, and BMW face significant challenges as the industry shifts toward electric vehicles and software. Currently, they rely on acquisitions and partnerships with Chinese and American companies to enhance their technological capabilities, following their declining market share in China and changes in market valuation metrics that are no longer based solely on size and profitability. While these companies continue to achieve high sales and revenues, their market values are diminishing. Their strategies now involve software and battery projects with companies like Qualcomm, Tata, and XPeng. Meanwhile, industry standards are evolving from traditional engines to autonomous and electric technologies.

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