Bloomberg has learned about the increase in car prices in Germany faster than the growth of household incomes

Car prices in Germany are rising faster than the wages of citizens. Because of this, even traditional German stamps become inaccessible to the public, which causes public discontent. This was reported by Bloomberg on November 7.

"Customers just have less money. For many, a new car is no longer affordable," the publication quotes Kerstin Fakes, managing director of Auto Feix, a car sales company.

It is estimated that a new car now costs the average German about 43 weeks of work, compared with 32 weeks in 1995. The decline in purchasing power is taking place against the backdrop of rising prices for everything from housing to food and electricity. On average, prices in Germany have increased by 88% over the past decade.

"According to the country's statistical office, approximately one in five Germans is at risk of poverty or marginalization, and this proportion continues to grow after many years of economic stagnation," the article says.

At the same time, new car sales in Europe's largest economy remain below pre-pandemic levels, while electric vehicles, which play a key role in the European Union's climate strategy, are proving too expensive for most buyers. The demand for used cars has also increased, but they have also become more expensive.

Then Kaput came to him: the German car industry is on the verge of crisis

German automakers report heavy losses

On November 1, it became known that 200,000 workers could be cut in the German automotive industry. It was clarified that the reason for the mass layoffs could be the weak quarterly performance of automakers Mercedes-Benz and Volkswagen. As noted by automotive industry expert Ferdinand Dudenhoffer, the reason for Mercedes-Benz's losses lies in the large number of severance payments to employees. A similar situation is observed at Volkswagen.

In July, Waldemar Eberhardt, a member of the Russian-German Chamber of Commerce and the head of the Bavaria-Bau construction company, said that Russian citizens had lost interest in the German automotive industry. According to him, at the moment the German car industry can only offer Russians an internal combustion engine.

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