The day of reckoning for German innovation has finally arrived

This week’s news about potential VW factory closures sent shockwaves far and wide. How will Germany fare if its stake in the automotive industry declines, and the next wave of innovation is one in which it has no stake?

We could be witnessing the dawn of a 'new wave' in hardware/software ecosystems. After cars and smartphones reshaped our world, AI and AI humanoid robots could dwarf both industries combined.

VW's potential factory closures in Germany aren't just news; they're a canary in the coal mine. As EV production shifts east and AI transforms manufacturing, traditional automotive powerhouses face an existential challenge.

Our analysis suggests the AI ecosystem could hit a staggering $7-12 trillion annually by 2033, with AI robots alone potentially worth $1.5-2.75 trillion. That's larger than today's global automotive industry!

But who's leading this revolution?
This is not an exhaustive list. But there doesn't seem to be much evidence of German companies in this current move towards genAI-powered humanoid 'workers and helpers'.
The US (Figure, Apptronik, Tesla's Optimus)
Norway (1X - OpenAI recently invested into this company too)
China (Unitree)

The risk? Germany could see its automotive value decline while missing the boat on the next massive hardware/software ecosystem.

It finally feels like the time for a radical rethink of Germany's industrial strategy can’t be put off any longer.