Berlin | Nov. 02, 2026, 4:35 p.m. ET | 4 min read

For decades, “German engineering” was synonymous with arguably the world’s best cars: the symphonic hum of an exquisitely calibrated internal combustion engine, combined with the elegant appointments of a meticulously crafted autobahn experience.

Today, experts say, the phrase is in danger of becoming synonymous with the potentially enormous costs of overconfidence, complacency, and an unwillingness to change.

The German auto industry faces what many analysts agree is the most daunting crisis in its history.

Just as Apple reinvented the telephone, Tesla has effectively reinvented the car, turning it from a vehicle to a computer on four wheels and revolutionizing how it is built, making the process faster, more innovative, and more efficient.

The German industry has largely ignored the trend, while new Chinese automakers have built themselves almost from scratch precisely to deliver this “car of tomorrow.” The result has been a disaster, the scope of…