Porsche Warns of 'Europe's Poorhouse' After Combustion Engine Ban

Stuttgart-based carmaker Porsche has issued a stark warning about the future of Germany's car industry, saying that an EU ban on combustion engines would turn the country into "Europe's poorhouse."

Porsche's chief financial officer, Lutz Meschke, told German outlet Handelsblatt that the ban, which is due to come into effect in 2035, would have a "devastating" impact on the German economy.

Meschke said that the ban would cost Germany up to 100,000 jobs and €100 billion in lost tax revenue. He also warned that the ban would make Germany less competitive in the global car market.

Meschke's comments come as the German government is considering a ban on combustion engines in an effort to reduce carbon emissions. The ban is part of the EU's Green Deal, which aims to make the bloc climate-neutral by 2050.

However, Porsche is not the only carmaker to express concerns about the ban. Volkswagen, BMW, and Daimler have also raised concerns about the impact of the ban on the German economy. The German government has said that it is committed to the ban, but it is still working on the details of how it will be implemented.

Is Porsche Right?

Porsche's warning is not without merit. The German car industry is a major part of the country's economy. In 2021, the car industry accounted for 12% of German GDP and employed over 800,000 people.

A ban on combustion engines would have a significant impact on the German car industry. Many car manufacturers would be forced to close their factories and lay off workers. The ban would also make it more difficult for Germany to compete in the global car market.

However, it is important to note that Porsche's warning is based on a number of assumptions. For example, Porsche assumes that the ban will be implemented in a way that will make it difficult for car manufacturers to switch to producing electric vehicles.

It is also important to note that there are a number of other factors that could affect the future of the German car industry. For example, the development of new technologies, such as hydrogen fuel cells, could make it possible for car manufacturers to continue producing vehicles that do not emit greenhouse gasses.

What Does the Future Hold?

It is difficult to say what the future holds for the German car industry. The EU ban on combustion engines is a major challenge, but it is not the only challenge that the industry faces.

The car industry is also facing challenges from new technologies, such as autonomous vehicles and ride-sharing services. These challenges are likely to have a significant impact on the industry, regardless of whether or not the EU ban on combustion engines is implemented.

However, the German car industry is a resilient industry. The industry has faced challenges before, and it has always found a way to adapt. It is likely that the industry will find a way to adapt to the challenges of the future, including the EU ban on combustion engines.