The article discusses the decline of Germany's luxury car industry, traditionally known for its high-end sedans which have historically ensured substantial profits and wages for German auto manufacturers. However, this sector is currently threatened as demand shifts towards luxury SUVs, many of which are produced outside of Germany. This transformation risks the core economic model that supported high-paying jobs in the German metalworking industry, traditionally fueled by the production of luxury sedans.

For many years, German premium brands were recognized for their luxurious sedans that offered high-profit margins. These brands enjoyed significant economies of scale and quality advantages over foreign luxury manufacturers, who often struggled with production quantities and quality control. However, according to the article, as interest in luxury sedans diminishes, the sales figures for German premium vehicles are declining, raising concerns about the ongoing viability of this economic model.

In summary, the article highlights a significant shift in consumer preferences from luxury sedans to SUVs and the potential economic repercussions for Germany’s automotive sector. The move could undermine the manufacturing base that provides not only profitable vehicles but also sustains a high-wage economy, necessitating attention from industry stakeholders and policymakers to adapt to this changing landscape.