Intro:

The German Economic Council calls its car industry “the lifeblood of the German economy.” Even in these volatile markets, Porsche recently completed a landmark IPO and went public at the highest market capitalization of any European public offering ever. German cars can be found in every corner of the world, and it is no coincidence that the catchphrase “German engineering” was popularized by an Audi ad.

But with the global transition to electric vehicles underway, there is now a threat looming over the future of the German automotive industry. Europe’s largest economy is more dependent on gas-powered cars than is commonly realized, and because of how its economy is structured, transitioning to electric vehicles will be more difficult than most people imagine.

The transition to electric cars is going to completely upend Germany’s economy—and probably not for the better.