German automakers have been shifting to EVs for the past few years and have been trying to compete with the dominance of the U.S. automaker Tesla, but in fact, contrary to their aims, they are falling further behind Tesla.Tesla sold nearly 890,000 EVs in the first half of this year, surpassing the combined EV deliveries of Volkswagen (VW), BMW, Mercedes-Benz Group, and Porsche.

The German automakers have been experiencing delays in launching key models due to software problems, and their sales volume in China, their largest market, has been declining.

While the Germans are mired in difficult talks with labor unions about restructuring their internal combustion engine-era production facilities, Tesla plans to expand its German plant and is preparing to build a new plant in Mexico.

Matthias Schmidt, an automotive analyst based near Hamburg, Germany, notes that "Tesla is far ahead of the German automaker in all major markets." He points out. He adds, "The Germans are having to increase sales to achieve the scale needed to make EVs profitable." He says.

In Germany, Europe's largest economy, inflationary pressures, labor shortages, and rising energy prices are adding to the structural challenges posed by the EV shift. Expectations for German automakers are the worst since the 2008 financial crisis, according to a study released this month by the Munich-based Ifo Institute.

The biggest threat to the Germans is their weakening presence in China, where VW, BMW, and Mercedes have dominated sales of gasoline-powered vehicles in the world's largest auto market for decades, but have recently fallen behind Chinese automakers that produce affordable EVs with technology and software tailored to local consumers s EVs have taken a back seat. Bloomberg Intelligence analyst Michael Dean says, "The Germans' next-generation EV platform could change the game. Only then will we see a major breakthrough for the Germans in China."

Seven major automakers have announced the formation of a joint venture to create a large-scale EV fast-charging network in North America. The seven participating companies are General Motors (GM), BMW Group, Honda, Hyundai, Kia, Mercedes-Benz, and Stellantis.The joint venture, to be established in mid-2023, plans to install at least 30,000 EV fast chargers in the United States and Canada. The first of the new charging stations is expected to open next summer, according to the announcement.

In a statement, GM CEO Mary Barra said, "GM's commitment to an all-electric future is focused not only on delivering the EVs our customers prefer, but also on investing in charging and working across the industry to make it more accessible."

In a recent Cox Automotive survey, about one-third of people cited lack of charging facilities as the top reason for not purchasing an EV, down from 40% in 2021. At the same time, the percentage of those considering an EV rose to more than 50% from 38% two years ago.

New charging stations will be built around major cities and along popular travel routes, the companies said. Each charging station will be equipped with several high-powered fast chargers capable of filling an EV's battery to about 80% in about 30 minutes. Where possible, overhead canopies will be installed to shield them from sun and rain, and they will be located near restaurants and bars.

The compatible charging systems will include both the North American Charging Standard (NACS) cable used by Tesla in the Tesla Supercharger and the more widely used Combined Charging System (CCS) cable The U.S. Department of Energy's data indicates that this

According to data from the U.S. Department of Energy, this new joint venture alone would significantly increase the number of fast chargers currently in the United States. There are currently about 35,000 NACS and CCS chargers in the U.S., but more will be needed as the number of EV vehicles increases. This year will be the first year that more than one million EVs will be sold in the U.S.," said Brian Moody, executive editor of AutoTrader. An emissions control plan announced by the Biden administration last year would essentially mandate that half of all new cars sold in the U.S. be EV vehicles by 2030. The National Renewable Energy Laboratory, under the U.S. Department of Energy, estimates that 182,000 fast chargers will be needed by then.

The U.S. Semiconductor Industry Association (SIA) has opined that the U.S. semiconductor industry will face a labor shortage of approximately 67,000 workers by 2030. The U.S. semiconductor industry's workforce is projected to grow from approximately 345,000 this year to 460,000 in 10 years. However, according to a study conducted by SIA and Oxford Economics, if school graduation rates continue at their current pace, the semiconductor industry is not expected to have enough qualified workers to meet its workforce needs in proportion to its growth.

In the U.S., the CHIPS Act was passed last August to secure funding for new manufacturing facilities and research and development to strengthen domestic semiconductor manufacturing. The Commerce Department is overseeing the $39 billion in manufacturing subsidies provided under the act and has announced that companies such as Intel, Taiwan Semiconductor Manufacturing, and Samsung Electronics will apply. The law also creates a 25% investment tax credit for the construction of new semiconductor plants, amounting to $24 billion.

These new factories and other new construction will create jobs, the SIA noted. The SIA expects that this will result in a shortage of workers such as computer scientists, engineers, and technicians.