German car stocks take off after the approval yesterday in what Angela Merkel called "the most complete economic recovery plan in German history" in which the four-wheel sector plays a central role. Advance Volkswagen +3,4%% ahead of bmw +2,7% but behind Daimler up just under 4,8%. The charge of the houses across the Rhine was also transmitted to the French houses, from Peugeot to the revived Renault which scores an abundant 8% rebound. In Piazza Affari, after a timid start, he accelerates Fiat-Chrysler: the interventions in Berlin, which closely follow the Macron plan, facilitate not only theFCA loan march but they pave the way for other interventions, necessary to absorb the enormous stocks crowding the dealerships' yards.
So far the economic effect. But it would be simplistic to examine Berlin's intervention in the light of simple economic stimulus, instead of considering it as the result of a choice made in the context of the 57-point political agreement between the CDU/CSU and the Social Democrats, with an eye to the Greens. First of all, unlike what Macron did (and hoped for by Italian operators) Germany has limited the incentives (6,7 billion euros) to the electric car and the installation of columns for recharging vehicles. After a bitter debate, the idea of a scrapping premium for traditional low-pollution engines, the path chosen by France, did not pass. It was a point of much debate because until the end Merkel's party asked for interventions that were not limited to electric vehicles, the most expensive and so far, least coveted by consumers. But, in the wake of the gigantic investments made by the big car manufacturers (30 billion for Volkswagen alone), the electric lobby had the upper hand. The big names in Germany intend to reaffirm the primacy conquered in diesel engines in the electric sector. This explains the massive investments in China, where Volkswagen is buying up companies in difficulty due to the pandemic. As well as the welcome given to Tesla which in a few months will open the factory on the outskirts of Berlin.
No less significant is the decision of finance (7 billion) the start-up of factories for the production of hydrogen, the real long-term solution for powering cars, before battery disposal problems turn into a new environmental nightmare.
In summary, the German industry, faced with the clouds that for many years have threatened the hegemony of the car, the spearhead of the economy, is rethinking itself in the light of increasingly strong technological leadership. It is a costly maneuver and not without risks, given the crisis in global demand. But the possibility of financing at very low rates, even below zero, makes it possible the challenge in which the Italian "satellites" will also participate which (see Brembo) have always accompanied the fate of Made in Germany. Fiat Chrysler, for now, thanks: the good health of the German gold is a guarantee for the whole sector. As long as you can keep up.
