‘Power will shift’ Germany losing grip on EU as ‘weak economy’ cripples Berlin

The “sheer size” of the German automobile industry – which accounts for around 10 percent of the country’s GDP – has made it “acutely vulnerable” to a slowdown in car sales and a rise in electric vehicle sales.

Despite rising steadily through the 2010s, global car production plateaued in 2017-18, before dropping in 2019-20.

The country has faced supply chain issues and a reliance on Russian gas had exposed it to soaring energy prices, Mr Lynn noted.

Wholesale natural gas prices have risen significantly this year as demand increased with economies unlocked from the coronavirus pandemic.