Prof. Ferdinand Dudenhöffer talks about the competition with China, the current opportunities for the German automotive industry – and his personal motivation to give the industry fresh impetus.

Prof. Dudenhöffer, it is now four years since you proposed new business models and new partnerships with and in China here in the CIIPA annual report of the German automotive industry. How has this suggestion, which was met with little support at the time, been received today?

It is not important to me to be heard or understood. What is important is that we recognize how much the world is changing. And in the automotive sector, this new world is called China. More than 50 percent of cars are now sold as electric cars in China – at cost structures that are very interesting for customers. And the vehicles offer a lot in terms of IT and digital technology that we have not yet seen. So everyone has understood that China is the home of the new car. Just think of the large development centers that our manufacturers now have in China. The disappointing sales figures of German carmakers in China from quarter to quarter indicate economic difficulties, but also the need for change. I think everyone sees that. And anyone who doesn’t see that won’t play a role in the automotive business in ten years.

In editorials, we read almost everywhere an analysis that is identical in content, that China has subsidized a state attack on “our” markets. Is that an accurate view of things?

These are fairy tales and myths that are told when you think you have lost out in competition. Look at Germany, how sad the state of this country has become. In Europe, too, we can think of nothing more than building a wall, and believing that if you build the wall high enough, you will be protected. The opposite is the case. Behind the wall, you become even weaker. What we are told about the different subsidies for the different Chinese cars are, in my opinion, not very fact-based.

China is a machine that creates innovations. Chinese companies have a very, very strong interest in creating something new.

How do you perceive the innovative strength of Chinese manufacturers and ecosystems?

China is a machine that creates innovations. Chinese companies have a very, very strong interest in creating something new, in making something that is interesting for others, that can be sold. A willingness to innovate and a focus on technology are widespread attitudes in China. If you look at the cities, the vehicles and see how new developments are being adopted, everything is happening at a breathtaking speed. Just one example: Gigacasting, which Musk was the first to bring. The Germans remained cautious; precise gap dimensions were more important. The Chinese are now using machines that can press ever larger parts with 13,000 tons of clamping pressure, making the vehicles cheaper. And when it comes to operating systems, the Chinese see the car as part of a digital ecosystem – we in Germany are light years away from these innovations.

Is the globalization process of the Chinese automotive industry somehow to be stopped by trade policy?

What they are doing is stupid. What they are doing in Brussels and what they are planning in Germany to some extent is stupid. Competition will always win. Even against the walls that Ms. von der Leyen is building and that France maintains as a matter of state. The Chinese manufacturers will come here with their factories. It is important that our suppliers get into their value chains and create something new together.

Improving driving performance and market knowledge are value-adding topics that we can introduce in collaborations.

Where is there still room for collaboration, and what role can European suppliers play in value creation?

China is indeed well advanced in digitalization. But improving driving performance is our value-adding topic that we can introduce. All those who work in the supplier area on these things have a good chance of connecting with Chinese carmakers. Or the local advantages we have – the way we build factories, attract people and partners. Even the Chinese sometimes make mistakes because they don’t properly understand the cultures here. Take the distribution systems they use to get into the market quickly and how much money they burn there. It is time for Chinese companies to show a little humility. It is wrong to believe that you only have to land 3,000 cars with a big ship to conquer Europe. Only those who understand each other properly can work well together.

We have to carefully look for the parts where we can best fit into this puzzle of new value creation with our engineering skills.

A new field of value creation is battery production. What prospects does the cooperation have here? Is there still room for European value creation?

Yes, there is room. You have to look at the different stages of production. At dry coating. We haven’t seen much from China yet. Or the solid-state battery. VW and PowerCo have tested intensively and achieved good results; now it’s going into series production. Asahi Kasai, a Japanese company, has supplied a high-quality, even superior electrolyte. We have to carefully look for the parts where we can best fit into this value creation puzzle with our engineering skills. And we also have to show this to customers – including in Shanghai, at what is now the most important motor show in the world. 2025 will be the most important trade fair of the last 20 years.

Together with Drees & Sommer, you have also just initiated the New Manufacturing World, now the Battery World in Munich, and you will also be active at Auto Shanghai. Finally, a personal question: What still drives you?

Yes, I am 73 and the board members at Drees & Sommer have also asked me this question. I just asked them in return: Have you ever heard Beethoven’s 9th symphony? Beethoven agonized over it when he was already deaf and could hardly see. I’m not Beethoven, I’m just saying: we are not here to take a vacation on Earth, to stretch our bellies in the sun in Honolulu, but to have a vision, a goal. There is a chance that we will work together worldwide, and together reach a higher level. Those who work alone and calculate only add. Let’s multiply, with this dynamic China, which can also pull us along into innovation and the future.

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The conversation between Hans Gäng and Prof. Dudenhöffer took place at the end of 2025 and, along with numerous other interviews, will also be published in the annual report of the Chinese investment agency CIIPA.