Newscasts - Germany's once-vibrant auto heartland falls on hard times

Porsche Automobil Holding SE

24/02/2026 13:00

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Source: 'Reuters - Business videos'

Description: Region Baden-Wuerttemberg faces economic challenges as an auto industry crisis endures, with firm Dostech, which pivoted towards the sector, feeling the pinch and cutting jobs. Fiona Jones reports. 

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Video Transcript:

Germany's once-vibrant auto heartland has fallen on hard times, and Dostech, which shifted focus in 2018 towards serving the industry, is feeling the pinch. The company is a supplier of sealant technology and its pivot initially paid off, fueling rapid growth. But it also exposed them to Germany's carmakers, which are now mired in crisis. Dostech Co-Founder Steffen Braun says its auto-related revenues have fallen and prompted job cuts.

I believe we're in a region where we can still respond, both in terms of personnel and jobs, but the job situation is difficult. It used to be much better, and I have to respond accordingly with the staff.

The auto industry's pressures are mirrored across the rest of Baden-Wuerttemberg, the country's top exporting region. Especially as, according to association DMB's Matthias Bianchi, falling demand in the automobile sector has trickled down to businesses in all other industries. The state is home to Mercedes and Porsche, car brands that were for decades synonymous with German manufacturing excellence. But intense competition, particularly from China, an uneven shift to EVs, and rising costs have rocked the sector. The state holds an election on March 8, where the economy has become the top concern of voters. Although Chancellor Friedrich Merz's conservative party is still likely to win the election, economic worries and a loss of regional pride are providing fertile ground for the far-right AfD.