German auto industry expert warns: Technological openness harms industry

German auto industry expert Martin Gornig believes Germany and Europe can counter China's industrial dominance by focusing on specialized technologies rather than mass production. Gornig, research director for industrial policy at the German Institute for Economic Research (DIW), stated that Europe has a history of finding solutions when other nations threatened to leave it behind technologically.

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The answer is always niche.

"The answer is always niche," Gornig emphasized. He suggested that Germany could regain leadership in areas requiring specialized technologies, such as robotics in the construction sector. However, this requires "courageous policy" that identifies and supports specific technologies, rather than the current approach of "technological openness," which he argues is detrimental.

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Technological openness is the downfall of the German industry, if nothing is invested in any technology as a result.

Gornig criticized the concept of technological openness, calling it "the downfall of the German industry" because it discourages investment in any single technology and protects old ones. He pointed to Germany's failure to keep pace with China's e-mobility advancements as a consequence of this strategy. "German products used to be successful in China because Chinese buyers felt they were better cars than their own," Gornig said. "Today, they ask themselves why they should pay more for worse cars from Germany."

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Today, they ask themselves why they should pay more for worse cars from Germany.

He also dismissed tariffs on Chinese electric cars as a flawed solution, stating they would allow German companies to avoid necessary adaptations and continue producing subpar electric vehicles. "Putting tariffs on e-cars is just awful. It means our corporations are forced not to make adjustments. They can continue to produce bad electric cars," Gornig asserted. Instead, he called for "competitive trade policy" to foster technological development and prevent China's market-grabbing strategies, suggesting temporary special tariffs as an accepted OECD practice.

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Putting tariffs on e-cars is just awful. It means our corporations are forced not to make adjustments. They can continue to produce bad electric cars.