"It's preposterous to contemplate BMW launching a hydrogen-powered vehicle."
Frank Henkel is widely recognized as one of the country's most influential and active investors. On the ntv podcast "Beyond Business," the former "Die Höhle der Löwen" star discusses the current challenges facing the startup scene and shares his political views. Elon Musk's role is brought up as well. According to Henkel, Musk is excelling as an entrepreneur, but he disapproves of Musk's political actions. As for Musk's political involvement, Henkel thinks it's imprudent. In the US, Musk expressed support for Trump's potential presidential nomination with substantial financial backing. During the podcast, Henkel expresses his disapproval of Trump's past actions that warrant criticism. He believes entrepreneurs should avoid getting involved in political campaigns but believes entrepreneurs should speak out on social issues.
ntv: Elon Musk has announced his intention to advise the next US president, should it be Donald Trump. He has contributed millions to his campaign. As a big supporter of Musk in the past, what's your take on him now and his political involvement?
Frank Henkel: I view Musk, the businessman, and Musk, the political activist, as two separate entities. It's his right to have political opinions, but I believe his political actions lack wisdom. Trump's past actions have been questionable, and it's valid to criticize them. Should entrepreneurs abstain from getting involved in political campaigns? Perhaps that would be more prudent. Expressing support for a political candidate can sometimes damage one's image and reputation. But it's also valuable to communicate on significant social issues. We can learn from this in Germany.
Does this apply to the entrepreneur as well?
Musk is demonstrating remarkable talent as an entrepreneur. SpaceX's achievements, delivered under tight budgets, are nothing short of impressive. Tesla, too, is producing groundbreaking robotics, chips, and advanced data technologies in challenging conditions. Regarding the German automobile industry's future, Henkel admits that it's facing significant challenges but does not seem confident in its ability to compete with foreign players, such as BYD and Tesla.
Can the German auto industry retain its global leadership position?
Henkel does not anticipate the German auto industry's ability to dominate the market but sees it having a chance to survive. He argues against the ban on combustion engines, believing consumers should be free to make their own choices. He suggests implementing a CO2 tax to regulate emissions, which may encourage the adoption of electric vehicles while permitting the use of traditional-fuel vehicles.
Can't Germany produce affordable, high-quality batteries?
Currently, only Chinese companies, such as CATL and Tesla, are capable of producing both high-quality and affordable batteries in large quantities. Henkel points out that attempting to buy batteries from foreign manufacturers won't produce the same cost savings. As a result, he expects BYD and Tesla to be the principal car manufacturers in the future. He envisions a scenario similar to Apple and Samsung, with the German auto industry playing a supporting role.
VW is currently developing battery factories, including one in Salzgitter. What are your thoughts on this?
Henkel finds Northvolt a better option, but even Salzgitter's production may not be enough to compete with CATL or Tesla in terms of volume. Henkel highlights the importance of scaling up battery production and notes that it's particularly challenging to produce high-end technology on a mass scale. He expressed hope that German car manufacturers would soon present an innovative battery solution that could compete with Tesla's cost-effectiveness and production capability.
Who's to blame for this situation? Are the political frameworks deficient?
Henkel believes some strategic blunders by German car manufacturers have contributed to the industry's decline. He cites BMW and Volkswagen's success in the past but points to their failure to adapt to the changing market and technological landscape. He wonders whether Germany's high energy prices have negatively impacted the industry. He anticipates that Tesla and soon BYD will begin producing in Germany, given its proximity to the EU market. He expresses regret that some of Tesla's production technology came from German suppliers, which could have been an opportunity for German car manufacturers.
The interview was conducted by Sandra Navidi and Ulrich Reitz, and can be listened to in its entirety on the "Biz & Beyond" podcast.
Frank Henkel expresses his concerns about Elon Musk's political involvement, stating that he believes Musk's support for Trump's potential presidential nomination with substantial financial backing is imprudent, given the questionable actions of Trump in the past.
Furthermore, in the context of the German automobile industry, Henkel discusses the Manufacture of motor vehicles and suggests that implementing a CO2 tax to regulate emissions may encourage the adoption of electric vehicles while permitting the use of traditional-fuel vehicles. This could potentially help the German auto industry sustain its global position despite facing significant challenges and being unable to produce affordable, high-quality batteries in large quantities, unlike Chinese companies like CATL and Tesla.
