Amit Paranjape’s Blog

Germany pays twice, and builds twice as many cars as U.S. – An interesting tale of two systems

Posted in Cars, Current Affairs by Amit Paranjape on December 23, 2011

I have always wondered about the divergence in the direction and fate of the U.S. and German car industry over the past few decades, and especially in the past decade.  The U.S. industry is still in a big crisis, though showing some signs of slowly coming out – while the German industry seems to be doing reasonably well – inspite of the global slowdown. What factors contribute to this difference? It is better labor productivity, better products, innovation, or something else. I came across a great article that tries to explain this quite well:

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