German automakers came out swinging at the Munich auto show during the weekend.
BMW took the wraps off the latest prototype for its next-generation electric vehicle, reviving the historic “Neue Klasse” name for the most expensive product program in the company’s history.
Mercedes unveiled a prototype of the first vehicle that will debut with its new MMA EV/software architecture. The future CLA and the Neue Klasse are both aiming to boost efficiency to 13 kWh or less per 100 kms (62 miles).
That number looks like the industry’s new benchmark – roughly where the Model 3 is today.
But by Tuesday, Chinese automakers had taken over the Munich stage. A celebration of German industry prowess was transformed into a revealing demonstration of how the industry’s balance of power is shifting.
Of the automakers at the show, 41% were from Asia and double the number of Chinese brands had stands compared to the last show.
European industry executives fretted that the European Union’s drive to eliminate new combustion vehicle sales by 2035, coupled with relatively open trade policies, give the edge to Chinese EV makers who have China’s dominant battery makers at their backs.
Chinese executives such as BYD’s Wang Chuanfu, CATL chair Robin Zeng and Xpeng’s Brian Gu called on German automakers to build more partnerships with Chinese rivals.
Their remarks walked a line between respectful and “nice auto industry you’ve got here, shame if something happened to it.”
“Germany has great principles and a well-established order for competition so I hope we can get to the next level together,” said CATL’s Zeng. “There is a proverb in Germany, if we go along the river we will discover the ocean. If we move forward and do it in an accessible way, we really will get to where we want to be.”
Wan Gang, (in picture above) the senior government official known as China’s “father of EVs,” used the Munich stage to reinforce the message that international collaboration is the best path. (He hardly needed to remind listeners of China’s increasingly uncollaborative relationship with the United States.)
“International collaboration” used to mean German automakers using Chinese manufacturers as junior partners to gain access to the world’s largest market. Now, Volkswagen, BMW and Mercedes are playing catch up in China, and battling to avoid losing more share to Chinese brands in their home market.
It wasn’t all long faces and handwringing at the show. There was some street theater: Greenpeace activists sunk several cars in a lake near the show venue. Protestors carried signs reading: “Shrink now or sink later.”
And Volkswagen unveiled a fun concept for a sporty electric GTI compact hatchback. Yes, please!
