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Germany Company Expansion

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Submitted By redrose917
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Introduction
Entering into a new market place is a great idea you came up with in our last meeting. It will allow our automobile company to grow and expand. Germany is a top candidate I would consider doing foreign direct investments in. Germany has the best automotive industry in Europe. They have social stability and the currency is strong. Their automobile manufactures produce 17% worldwide. The automobile industry is thriving in Germany and our company can participate in the thriving. They have the world’s most auto industry patents.
Germany’s Gross domestic product in 2012 is predicted to be .7% and in 2013 it is predicted to be 1%. It is Europe's number one automotive market. At least 35% of all passenger cars manufactured and almost 30% of all new registrations come from Germany. Germany has the most OEM (original equipment manufacturer) plants in Europe. 30 of the OEM plants produce for major brands. In 2009, the German auto industry exported auto products worth over EUR 150 billion. Refer to Figure 3.
Competition
Our main competition in Germany would be Audi, BMW, Daimler, Iveco, Ford, Opel, MAN, Neoplan, Porsche, Volkswagen. It would be in our best interest to become partners with one of these companies if we enter into the German market. Foreign direct investments will be discussed in the “Recommendation” section of the paper. Refer to Figure 2 for the worldwide competition.

Workforce and Labor
Germany’s automobile workforce is around 723,000. That is a large number for one industry. If the industries were to go under it will be devastating for the country. Germany’s law gives employees their rights and make sure they are treated fairly. Companies with more than five employees must have a works council. They can be in a union and they help develop strategies to help the company stay competitive.
Labor costs can be reduced more by

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