Hybrid business models are successful. Companies which offer solutions bundling manufactured products and services are well endowed with success factors and achieve better growth in turnover and employment than the average of German companies. Despite this, hybrid models are not widespread. To date only 16 per cent of all companies have a hybrid character. One reason for this is the obstacles hybrid companies face. They must deploy more resources and master a higher level of complexity. Nevertheless, these companies are convinced that the benefits outweigh the drawbacks. Thus in five years a fifth of all companies in Germany are expected to be pursuing the hybrid model.
The current debate on industrial policy vacillates between the extreme positions of an orthodoxy of rejecting state action and a naive belief in the state's ability to control structural change.
The automotive industry in Germany is currently facing several challenges. Car production had already fallen significantly before the Covid19 pandemic and in 2020 and 2021 suffered two slumps of historic proportions.