Hyperdrive

Porsche, BMW Need Germany to Pivot for Way Out of Crisis

Carmakers in Europe’s biggest economy struggle with waning sales and worsening trade ties with the US.

Germany’s export-oriented auto industry is especially vulnerable to rising trade barriers.Photographer: Krisztian Bocsi/Bloomberg
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Germany’s auto industry is in crisis. Sales have declined while production costs soared, leaving Volkswagen AG, Mercedes-Benz Group AG and hundreds of parts makers dangerously behind in the transition to electric vehicles.

Now, with US President Donald Trump threatening tariffs on their cars, executives are banking on Sunday’s election to deliver a new German government that will ease their pain.