Inbound air travel to Germany drops amid poor flight connections: survey
BERLIN, May 13 (Xinhua) -- The number of inbound air travelers to Germany has dropped due to inadequate international flight connections, according to a survey published on Tuesday by the German Airports Association (ADV).
The survey, which collected responses from more than 125,000 travelers, revealed that only 21 percent of air passengers arriving in Germany last year were foreign visitors. This marks a sharp decline from 32 percent in 2017.
"Germany, once an attractive travel destination, has been on a downward spiral since the pandemic," said Ralph Beisel, managing director of ADV. The association attributes the decrease to a lack of sufficient international air links.
Even Frankfurt Airport, the country's largest air hub, has not been immune to the slump. Its operator reported on Tuesday a first-quarter loss of 26.4 million euros (29.5 million U.S. dollars), compared with a profit of 12.7 million euros in the same period last year.
The new German government must include air travel in its strategies to enhance Germany's appeal as a travel destination, Beisel said. (1 euro = 1.12 U.S. dollar)
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The Star
3 hours ago
- The Star
Global auto giants look to China for future vision
At the Auto Shanghai show in April, an executive of Volkswagen — one of the world's biggest auto manufacturers — made a frank admission that the German giant had misfired on its country strategy for China. "To be very honest, we didn't have the right product strategy or the right approach to drive the business in China," Oliver Blume, chairman of the board of management of the Volkswagen Group, told China Daily. He was referring to the situation when the same event was held two years ago. "But at this auto show, we're not just talking about strategy or plans on paper — we're showcasing real results, and that makes me very proud of what the teams have accomplished," said Blume. The German automaker's long and profitable association with China began in October 1984 when it inked a deal with the Shanghai Automobile & Tractor Company to begin a joint venture, Shanghai Volkswagen. Now known as SAIC Volkswagen, it is the oldest extant automotive partnership in China. Despite the Germans' initial concerns that the fledgling China operation could not produce even "one Volkswagen-standard car" the first model of the joint venture, the Santana, rolled off the assembly line in late 1985. German technology and management, coupled with China's reform and opening-up and local workers' diligence, was the right formula for success. The Santana was a triumph, and for more than 30 years Volkswagen — joined by other foreign automakers such as Peugeot, Fiat, Toyota and Hyundai — rode on the path of prosperity created by China's ongoing development and modernization. By 2009, China had become the world's largest vehicle market, and non-Chinese brands accounted for 56 percent of total vehicle sales, according to the China Association of Automobile Manufacturers. But, the peak for overseas auto manufacturers in China was followed by a decline as the industry entered the era of NEVs. Volkswagen sales tumbled from 3.85 million units in 2020 to 2.92 million units in 2024. In the meantime, Chinese automaker BYD's sales skyrocketed from 427,000 units in 2020 to 4.27 million units in 2024. Volkswagen wasn't alone. South Korean automaker Hyundai, the world's third-largest carmaker, delivered 507,000 units in China in 2020, but last year its sales shrank to 157,000 units. General Motors, the No 1 carmaker in the United States, saw its sales in China plunge from 2.9 million units to 1.83 million units over the same period. Strategic rethink In recent years, Volkswagen has come to realize that developing cars in Europe and bringing them into China no longer works, as local rivals are coming up with completely new products at a super fast speed and car buyers are young and tech-savvy. Ralf Brandstaetter, CEO of Volkswagen Group China, expressed those ideas in late 2023 in Hefei, capital of East China's Anhui province, where the German company has built an R&D facility dedicated to smart new energy vehicles (NEVs). With an investment of 1 billion euros ($1.09 billion), Volkswagen China Technology Company is the carmaker's largest development center outside Germany. The center is creating an electric vehicle (EV) platform specifically for the Chinese market and to meet the demands of Chinese customers, The first model is scheduled to roll out in 2026. "We will bring the platform to market maturity in just 36 months. This means that we are reducing the development time by around a third," Brandstaetter said. One key driver of efficiency is greater involvement of local suppliers. Volkswagen said around 1,100 Chinese suppliers are involved, and the localization rate will gradually be increased to 100 percent. 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More importantly, these models are not engineered in Germany, but developed with "Chinese solutions", making them more appealing to local customers. The carmaker launched its "in China for China" strategy in 2023. "For us, 'in China, for China' is not just a slogan — it's our execution mode," Brandstaetter told China Daily at the auto show. Despite Volkswagen's renewed confidence, the challenges ahead remain formidable and Brandstaetter is acutely aware of the realities, especially the fierce competition faced from Chinese automakers. While the new generation of Volkswagen models tailored for the Chinese market is just around the corner, Brandstaetter remains cautious. "We are confident, but I think the competition is tough here in China, and this will be an ongoing challenge in the coming year," he said. 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Some 4,500 engineers work locally, with a large proportion of software developers, underscoring the growing importance of software and AI in automotive innovation. This trend is echoed by other industry players. Auto parts giant Continental unveiled the name of its new automotive group, Aumovio, at the Shanghai show, signaling a strategic shift to position China at the center of global mobility innovation. Philipp von Hirschheydt, CEO of Aumovio, said "I see (this launch) as a tribute to China and a recognition of the key role this market plays within our global organization." He said the local team has more autonomy because of the need for faster decision-making in a market where development cycles are shorter. German auto parts provider Schaeffler is celebrating its 30th anniversary in China, where it now employs 19,000 people across 17 factories and six research and development centers. "China is no longer just a growth market. It's becoming the epicenter of future automotive technology," said Matthias Zink, CEO of Schaeffler's automotive technologies division. "We believe the future of mobility is being written in China," Zink added. Chinese tech's role One of the most important assets for all global auto companies is China's thriving tech related to the industry. Automotive AI, smart in-car functions, and advanced driver assistance systems (ADAS) have become key battlegrounds where Chinese companies lead, or collaborate closely, with international players. In April, BMW announced integration of the locally developed AI model DeepSeek into its China-made Neue Klasse vehicles from 2026. The move marked a significant milestone in embedding Chinese AI into global products. The Neue Klasse models will also feature AI agents developed in partnership with Alibaba, that will offer digital manual support and travel planning tailored for Chinese consumers. 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The International Energy Agency predicts that NEVs will account for over 40 percent of global car sales by 2030. In China, the market share could reach 80 percent. It is too early to predict the fate of overseas carmakers in China's NEV era, as most of their new models will not hit the market until 2026, which could be a make-or-break year for many of them. Volkswagen's Blume, nonetheless, said he enjoys competition, likening it to sports, where competition helps improve one's performance. "If you aren't improving week after week, that means you are lazy — and that changes us, and makes us better," he said. Blume said China is like a "fitness center" for the global automotive industry, where global carmakers can sharpen their competitive edge by operating in this market. "Now, we feel fitter than we did two years ago. The customer will decide who wins in the market. You don't need to fear the battlefield when you're prepared," he said. - China Daily/ANN
New Straits Times
4 hours ago
- New Straits Times
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The industry worries that the rare-earths situation could cascade into the third massive supply chain shock in five years. A semiconductor shortage wiped away millions of cars from automakers' production plans, from roughly 2021 to 2023. Before that, the coronavirus pandemic in 2020 shut factories for weeks. Those crises prompted the industry to fortify supply chain strategies. Executives have prioritised backup supplies for key components and reexamined the use of just-in-time inventories, which save money but can leave them without stockpiles when a crisis unfurls. Judging from Eckard's inbound calls, though, "nobody has learned from the past," he said. This time, as the rare-earths bottleneck tightens, the industry has few good options, given the extent to which China dominates the market. The fate of automakers' assembly lines has been left to a small team of Chinese bureaucrats as it reviews hundreds of applications for export permits. Several European auto-supplier plants have already shut down, with more outages coming, said the region's auto supplier association, CLEPA. "Sooner or later, this will confront everyone," said CLEPA Secretary-General Benjamin Krieger. Cars today use rare-earths-based motors in dozens of components – side mirrors, stereo speakers, oil pumps, windshield wipers, and sensors for fuel leakage and braking sensors. China controls up to 70 per cent of global rare-earths mining, 85 per cent of refining capacity and about 90 per cent of rare-earths metal alloy and magnet production, consultancy AlixPartners said. The average electric vehicle uses about .5 kg (just over 1 pound) of rare earths elements, and a fossil-fuel car uses just half that, according to the International Energy Agency. China has clamped down before, including in a 2010 dispute with Japan, during which it curbed rare-earths exports. Japan had to find alternative suppliers, and by 2018, China accounted for only 58 per cent of its rare earth imports. "China has had a rare-earth card to play whenever they wanted to," said Mark Smith, CEO of mining company NioCorp, which is developing a rare-earth project in Nebraska scheduled to start production within three years. Across the industry, automakers have been trying to wean off China for rare-earth magnets, or even develop magnets that do not need those elements. But most efforts are years away from the scale needed. "It's really about identifying ... and finding alternative solutions" outside China, Joseph Palmieri, head of supply chain management at supplier Aptiv, said at a conference in Detroit last week. Automakers including General Motors and BMW and major suppliers such as ZF and BorgWarner are working on motors with low-to-zero rare-earth content, but few have managed to scale production enough to cut costs. The EU has launched initiatives including the Critical Raw Materials Act to boost European rare-earth sources. But it has not moved fast enough, said Noah Barkin, a senior advisor at Rhodium Group, a China-focused US think tank. Even players that have developed marketable products struggle to compete with Chinese producers on price. David Bender, co-head of German metal specialist Heraeus' magnet recycling business, said it is only operating at 1 per cent capacity and will have to close next year if sales do not increase. Minneapolis-based Niron has developed rare-earth free magnets and has raised more than US$250 million from investors including GM, Stellantis and auto supplier Magna. "We've seen a step change in interest from investors and customers" since China's export controls took effect, CEO Jonathan Rowntree said. It is planning a US$1 billion plant scheduled to start production in 2029. England-based Warwick Acoustics has developed rare-earth-free speakers expected to appear in a luxury car later this year. CEO Mike Grant said the company has been in talks with another dozen automakers, although the speakers are not expected to be available in mainstream models for about five years. As auto companies scout longer-term solutions, they are left scrambling to avert imminent factory shutdowns. Automakers must figure out which of their suppliers – and smaller ones a few links up the supply chain – need export permits. Mercedes-Benz, for example, is talking to suppliers about building rare-earth stockpiles. Analysts said the constraints could force automakers to make cars without certain parts and park them until they become available, as GM and others did during the semiconductor crisis. Automakers' reliance on China does not end with rare earth elements. A 2024 European Commission report said China controls more than 50 per cent of global supply of 19 key raw materials, including manganese, graphite and aluminum. Andy Leyland, co-founder of supply chain specialist SC Insights, said any of those elements could be used as leverage by China. "This just is a warning shot," he said.
The Star
6 hours ago
- The Star
Digital storytelling adds new appeal to night tours at Vietnam's Temple of Literature
Tourists taking a night tour at Temple of Literature in Hanoi, Vietnam, June 4, 2025. - Xinhua HANOI: In the Vietnamese capital of Hanoi, the Temple of Literature, known locally as Van Mieu, has begun using digital projection technologies to present its cultural heritage in a new light, drawing growing interest from both local and international visitors. Built in 1070 during Vietnam's Ly Dynasty, the site is one of the country's oldest and most revered historical landmarks, originally established to honour Confucius and later serving as Vietnam's first national university, Quoc Tu Giam. The temple, long seen as a symbol of Vietnam's traditional respect for education and scholarship, now features a nighttime experience that uses 3D mapping projections to transform its historic walls into a dynamic visual stage. This photo taken on June 4, 2025 shows a 3D mapping projection on the facet of a building at Temple of Literature in Hanoi, Vietnam. - Xinhua Under a programme titled "The Quintessence of Education," animated imagery is projected onto the Tien Duong building in the Thai Hoc courtyard, combining light, sound and motion to illustrate traditional symbols, classical examinations, and cultural values rooted in education. By blending historical content with digital storytelling, the performance aims to make the site's cultural legacy more accessible to younger generations and international visitors unfamiliar with Vietnamese history. Thu Thuy, a Vietnamese visitor, said she came to the Temple of Literature for the first time after learning about the night tour on social media and was particularly drawn by the use of 3D projection technology. She said the visuals helped her notice architectural details and historical symbols that she might otherwise have missed, adding that the format made the experience easier to understand. A woman tries an AR/VR application at Temple of Literature in Hanoi, Vietnam, June 4, 2025. - Xinhua "It's a good way for people who don't know much about history to connect with it more deeply," she said, noting that she would recommend it to others. Jim Glovier, a visitor from the United States, said the nighttime experience gave him a different impression compared to his daytime visit to the site in 2018, as the projected visuals helped clarify the narrative and highlight cultural messages. He described the performance as easy to follow, even for someone unfamiliar with the historical background, and said the storytelling helped him better appreciate the site's educational significance. According to Duc Phuc, a staff member at the temple's communications office, the 3D mapping projection has been part of the evening tour since 2022 and has played an important role in attracting more visitors to both the temple and Hanoi in general. He said the use of technology adds a strong visual element that leaves a lasting impression and supports the communication of educational values in a more engaging and modern format. Phuc added that 3D mapping is just one of several tools the temple has adopted, alongside AR/VR applications, holographic displays, AI-driven interactive systems and video walls aimed at enhancing the visitor experience. "In today's context, if technology helps preserve and promote culture, we should embrace it as part of our development," he said. According to the Hanoi Department of Tourism, the city recorded around 12.77 million tourist arrivals in the first five months of 2025, with nearly 70,000 people visiting the Temple of Literature during the Lunar New Year holidays. - Xinhua
