FORBES: European Elections Could Undermine The Euro And German Automakers

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There’s no doubt at all that German industry has been hugely helped by the euro,” said Professor Karel Williams of the Manchester Business School.

“The euro’s future depends on massive political uncertainties. If Le Pen wins, unlikely at the moment, that would be the end of the euro and she would reinstate the franc, that’s declared policy,” Williams said.

Williams said the euro has been a disaster for many of those locked into it, apart from Germany.

The South Europeans, collectively known by the acronym PIGS, have suffered badly.

“Breaking up the euro now would bring us a new world of uncertainty, and particularly for the car industry. The future is threatening big changes. We’re at an inflection point. We’re going to have battery electric cars which don’t require high value added engines and gearboxes that internal combustion engine vehicles do. It will be easier for outsiders to muscle in. Volkswagen and Mercedes etc are going to have to divide the profits with the likes of Apple and Google,” Williams said.

“Yes, the euro has been a disaster for weak manufacturing countries and protected Germany. Now we’re in danger of entering a new world of uncertainty that will involve more national production or autarchy that happened in the 1930s. Not because anyone wanted that but just because the international order broke down,” Williams said.