Introduction:
Germany is one of the top economies in the world, and its business news is closely followed by many professionals and investors. In this article, we have outlined five must-read business news stories from Germany in 2021 that are shaping the country’s economic landscape.
1. Volkswagen’s EV revolution:
Volkswagen, one of Germany’s largest car manufacturers, has been making headlines with its ambitious EV plans. In March 2021, the company announced that it expects to have 70% of its European sales to be electric vehicles by 2030. This is a significant shift for a company that has long been associated with diesel vehicles. The company has pledged to invest over €35 billion into EV development and autonomous vehicles by 2025. Analysts predict that Volkswagen’s transformation could shape the future of the global automotive industry.
2. Wirecard Scandal:
Wirecard, a German payment processing company, made headlines in June 2020 when it filed for insolvency after it was revealed that the company had a €1.9 billion gap in its accounts. The scandal drew attention from around the world, with some experts calling it the largest accounting fraud in German history. The scandal led to multiple investigations and arrests, and it raised questions about the country’s regulatory framework. This year, the trial of Markus Braun, Wirecard’s former CEO, began in Munich, highlighting the ongoing fallout from the scandal.
3. Germany’s Industrial Supply Chain:
The COVID-19 pandemic disrupted global supply chains, and Germany was no exception. The country faced supply chain disruptions in its key industries, including automotive, machinery, and pharmaceuticals. However, recent government efforts and increased investment in digitalization and automation have helped to improve the country’s industrial supply chain. Companies such as Siemens, Thyssenkrupp, and BASF are leading the charge with digital solutions to optimize their supply chains.
4. Deutsche Bank’s Restructuring:
Deutsche Bank, Germany’s largest bank, has been undergoing a significant restructuring process over the past few years. The bank has been streamlining its business operations, and it plans to reduce its workforce by 18,000 by 2022. The restructuring has been challenging for the bank, with several setbacks along the way. However, Deutsche Bank’s CEO, Christian Sewing, recently announced a positive outlook for the company, stating that it is on track to achieve its cost-cutting targets.
5. Siemens’ Hydrogen Investment:
Siemens, one of Germany’s leading engineering companies, announced a €1 billion investment into hydrogen technology in July 2021. The investment aims to support the development of a green hydrogen ecosystem in the country, with plans to build a demonstration plant in Germany by 2025. Siemens believes that hydrogen technology will play a crucial role in decarbonizing many industries, including transportation and manufacturing.
Conclusion:
Germany’s business news in 2021 highlights the country’s ongoing transformation from traditional industries to innovative, digital solutions. The Volkswagen EV revolution, Wirecard scandal, and Deutsche Bank restructuring, are significant milestones in the country’s economic landscape. Additionally, Siemens’ hydrogen investment and the improving industrial supply chain highlight Germany’s focus on sustainability and innovation. These developments provide business professionals with essential insights and show that Germany is a country to watch in the coming years.
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