Editors choice #1: It's burning brightly!

Alarm bells are ringing among German car manufacturers – for two reasons, some of which are contradictory: On the one hand, profit margins are expected to increase, while on the other hand, they want to build affordable cars for as many customers as possible. However, the latter brings less profit than the production of higher-priced models, which is why even Dacia is daring to enter the C-segment with the "Bigster".

Vehicle prices have risen more sharply than wages and company car policies

The only problem with this story is: the majority of average German earners and company car fleets are not keeping up with this upward trend because they simply cannot (or no longer) afford it. This is why Mercedes-Benz dealers, in particular, are sounding the alarm, since an increasing portion of their revenue was coming from the volume- and new customer-bringing compact models. Not necessarily in sales, but in service! Because many customers mean many cars in for service and in the workshop – revenues that the trade relies on to support or partly offset the sometimes heavily discounted and challenging new car business.

Unthinkable ten years ago: Mercedes-Benz and Maxus under one roof

But after Mercedes-Benz has partially bid farewell to the taxi business with the E-Class and Co. and the vans are rather tolerated as "dirty vehicles" than courted, discontent is spreading, because which vehicles need the most service? Exactly! Not the pampered SL, which comes in for an expensive regular service once a year, but the taxi that has sustained its fifth dent or the van that has once again got scratched and drives 80,000 kilometers a year. All customers who could be lost to the star sellers, especially as they struggle with high prices.

Thus, second brands like Maxus and Co. are increasingly being brought in. The Chinese brand, which started as a model designation from LDV, could hardly compete with the Sprinter, even in the (former) home market in the UK. Additionally, there are more and more Chichi models and actions, with which the "base of the star riders" feel less and less engaged. But Mercedes-Benz could counteract as early as the IAA, where they present a kind of electric C-Class as the centerpiece of the program. This is all the more important as BMW will unveil its "new class" - the future Three Series, which will represent a giant leap compared to the current model.

This is also necessary, because in the meantime, Tesla is repeatedly placing itself at the top of registration lists in many EU countries with the successful Model Y and is not necessarily scoring with quality or service, but with range, efficiency, and a great charging experience. There is also at least a slight competence in batteries and bold gigacasting in the bodywork, which makes the cars cheaper to produce (still).

VW: Rarely First, but Always Best – Not Anymore

Which brings us to VW, where nothing could influence the calm flow of the Mittelland Canal past the main plant: They were not always first, but always the best, and that was enough for the customers. But that is no longer the case: The ID series was indeed very bold but couldn't outrank the Golf and Co. It faltered with solidly running software, operation, and efficiency. Issues that were previously unheard of at VW and that in sum were too much for their loyal customers. In addition, high labor and energy costs in Germany make the cars produced here expensive.

What nobody expected beyond that: In China, the star of "made" or at least "engineered" in Germany or Europe is fading very quickly. Young customers are instead buying BYD and Co., causing VW to lose its long-held position as number one. For partner SAIC, this is not tragic, as they also cooperate with GM and have quietly built up MG to be a competitor to VW. So, there's indeed fire under the roof in Germany. The question now is, how best to extinguish it?

Modesty would be a virtue...

With humility and modesty and fair competition. This must mean that Europe also somewhat shields itself from the cheaper imports from Asia, which contradicts free but not fair global trade. Alternatively - and this is already happening to some extent - manufacturers that sell cars in the EU must also produce in the EU. China, India, and the USA do the same.