With 121 billion EUR, the German car industry earned 60% of its sales in foreign
countries. German car manufacturers and suppliers employ more than 1.5million people
worldwide, more than half of them in Germany. Recently, domestic employment has
been expanded; Since 1994, the number of jobs at home increased by122000.Despite
economic weakness in 2002, employment in the car industry remained almost constant
with 763 500 people. Owing to the assumption of additional value-added activities from
the manufacturers, suppliers even employed additional staff. The German car industry
employs more than 12.8% of the working population of the whole German industry. At
the same time, it raises one third of the R&D expenditure of the German economy and
one-fifth of the investments. During the last five years, 49 billion EUR were invested in
Germany; over this period of time, expenditure for R&D exceeded 65 billion Euros, and
the R&D staff was increased significantly to more than 70,000 employees (VDA, 2003).
Germany was one of the European countries that succumbed early to the
fascination of Fordist production methods. German automakers made pilgrimages in the
1920s to the USA, seeking to discover the secrets of the economic future at the holy cities
of capitalism, which of course included the Ford plants at Highland Park and River
Rogue. Creating the preconditions for a new age in automobile production was a strong
motive behind numerous efforts to concentrate car production capacity in Germany. After
the postwar stabilization of the economy, the large German banks - above all the
Deutsche Bank - toyed with the...
Robert Merton (1987), "On the Current State of the Stock Market Rationality Hypothesis," in Ruddier Dornbusch, Stanley Fischer, and John Bossons, eds., Macroeconomics and Finance: Essays in Honor of Franco Modigliani (Cambridge, MA: M.I.T. Press).