From Torque News.

Germany’s auto heartland is in trouble. Even companies that switched early to electric vehicles are struggling. Dostech, a small supplier in Baden‑Wuerttemberg, invested heavily in EV technology in 2018. It seemed like a smart move. But today, they’re cutting staff and losing revenue.

Why did doing everything “right” not work? Competition from China is fierce. Rising costs and uneven EV adoption made the market unpredictable. Even strong brands like Mercedes and Porsche can’t shield their suppliers from shocks.

Baden‑Wuerttemberg is Germany’s top exporting region. Its economy relies heavily on manufacturing — 38% of the state’s value comes from it. But growth has slowed. In 2024, the state economy shrank 0.4%. Smaller suppliers feel this pain the most.

What could have saved German auto suppliers and early EV adopters and what can still be done.

This is Armen Hareyan from Torque News. Please follow us at https://twitter.com/torquenewsauto on Twitter and https://www.torquenews.com for daily automotive news. Also, follow us on Telegram at https://t.me/teslaev