'Potentially at stake: Germany's energy security and climate goals. ' this is not true. Many companies offer turbines, 16 billion can procure many turbines or 16 GW of solar. Germany has an installed capacity of 67 GW that produced 60.8 terawatt hours in 2022. Most of the wind turbines are stranded and their capacity is curtailed as there is not enough grid capacity to send the electricity to where it's needed and solar can be installed closer to where it's needed, it's actually more productive in the regions with the highest need for electricity. A well run engineering company does not just discover 'flaws in its turbines'. The flaws have to do with 'wrinkles in rotor blades and particles in the bearings section on the 4. X and 5 wind platforms' and should have be identified during testing. Siemens should not have acquired Gamesa and Gamesa should have gone bankrupt and later emerge from bankruptcy with less liabilities.
Nuclear > wind / solar. Wind and solar are important and have clear use cases but not at the scale of entire national grids. That’s where safe and reliable power sources like nuclear step in. France pays, on average, half the cost per kWh than Germans due. Germany produces 50% less electricity than it did 30 years ago and consumes the same amount of electricity it did 30 years ago, down 12% over the last 10 years. Signs of an ailing economy when energy consumption stagnates, let alone drops. Frances production had increased by 25% since 1990 but has recently nose dived in the last 5 or so years, dropping 16%. That being said, their overall consumption has grown over the last thirty years by 30%, down from a 50% high in 2010. For reference, US production is up 40% over the last 30 years and consumption is up 40%
man has basic concept of capitalism. companies make money by milking the common man and when they go down they make all govt pay for their salvation which in turn squeezes common folk for raising capital. this is not the exception, this is the rule.
Nowadays it seems to be a good business model to start a company and make it too big to fail. As top management you get to pocket all the money with multi million salaries and allowances. In the end threaten bankruptcy so the Govt. rescues the company. Top management goes unpunished for any amount of mismanagement. Great business model.
Don't worry - the management is and will be paid fully including a 38% raise as soon as the signature is on the paper - and any bonus you can think of, which add up to around 250% their annual salary. Sadly, they will have to let go 10% of the workforce because there just isn't enough money.
Wind is cool and all but what about base load electricity? Mixing wind energy and gas or coal when there is lack of wind or sun as germany been doing for now does not give good enough co2 and price efficiency outcomes. Magical new battery tech also didn't materialized. Germany is not only years behind france in that regard but also without prospects to improve meanwhile france committed to build 14 new large nuclear reactors.
@@ElijahSmith That's what i said. Germany's model of wind and solar+fossil fuels as backup is not only more expensive than nuclear but also co2 and methane intensive.
He's right. Part of a well-regulated market economy is also about letting some companies fail. I would rather the government incentivize the creation of new green energy businesses than prop up a failing one.
What if Chinese buy the Siemens energy since they're forced to seek financing from anywhere they can? This is a mess. If you help Siemens, you do wrong, if you don't you might run them to the arms of our global competition... It's a tall order to ask private companies to fight war between countries... China owns EVERYTHING. Their companies, their people. Thus there's no difference between Chinese company and a Chinese government. What can Europe do against that?
@@geoms6263Trust me, large banks failing is the last thing you want to see. Then again, it’s ridiculous what banks are allowed to do and how much leverage they have over governments.
Its an American trend to keep rewarding already exorbitantly paid management's poor management of company using taxpayer money .. lets hope Germany wont catch on to it
Mr. Fuest is absolutely right here. Thank you for letting him make his argument. I do not want my tax payer's money to be used to subsidise ANY company. The government's job is to set rules for markets and competition and not to pick winners or technologies.
The problem is when the rule are not correct, in this case Chinese wind turbine provider has the support of the Chinese government so, basically that produce a unbalance in the market due the damping condition in the price of wtg
@@ahmadhuseynli2073yes Siemens is one of those companies that are so big that if they fail it’s a problem for the whole country’s economy. However that doesn’t mean that the government should always magically bail them out. If times are tough like they are now you cut back on some projects like he said in the video, you don’t overextend like crazy because you know there’s the big daddy (government) to fix everything if it fails. It sends an extremely bad signal to do this to many times, other big companies will be expecting it also
Private companies are private companies for the sole reason they are not run or financed by any state. Of course that can change, but then state ownership would be a prerequisitive.@@ahmadhuseynli2073
They did take responsibility when they bought out ownership of Gamesa. They showed that they were willing to take back control of their own company. People like to blame companies, but problems happen, and most energy companies are reliant on the government anyway. Energy is important to all.
They are in trouble because of a design flaw? So they had no insurance, overpaid bad engineers and overpaid bad management and now are asking the gouvernement for help? How is that fair? When my house burns down because I did a mistake and don't have insurance, no one is paying me back or giving me a loan. This should not happen.
So Siemens Energy has an undisclosed quality issue in it's wind turbine division and has accepted orders on terms that are not financially viable - and now they want the taxpayer to bail them out! That's a giant con. As the interviewee points out this is a business issue to be solved by Siemens, it's banks and its backers. It is most definitely NOT a taxpayer issue. And I just love it when the DW host tries to pin it on China and is very politely told it's a Siemens business issue - nothing to do with China. The host looks so disappointed that the old "blame China" game didn't work.
Germany has a right to defend their economic interest and Russia gas will fix their energy security or they can become like Britain a service economy ...😂
*But ...* These companies were encouraged by society to move quickly into renewable energy with strong incentives. When a society does this, there is a degree of increased risk --- and there *should be* that is _how_ society can shift course quickly and minimize the global catastrophe that is global warming. What this guy is advocating is a _business as usual_ method of letting profit motive alone guide a countries energy policy.The government should encourage rapid change when necessary and shore up the inherent risk that comes with it.
If banks dont give you loans, means you are done. Simple as that, and Santa Claus and the seven reindeers cant change that fact. If you put money into this its wasted. Its not that Siemens couldnt offer a mortgage to the banks to keep the show running, it is that the parent company doesnt want to have that mortgage on the profitable part of their business, and instead ask sugar daddy state for some candies.
What a bundle of joy that guy is. What they didn't tackle is WHY the gov IS doing it. Which is far more interesting and useful than just saying what the gov is doing 'wrong'.
But Germany IS having an energy emergency so the government SHOULD help Siemens get more wind turbines installed! The LNG prices are killing the German economy so BUILD MORE WIND TURBINES! (And reopen nuclear plants but that ain't happening )
wind turbines are definitely NOT the way to go, especially that there ARE existing nuclear power plants, closed only due to dumb decisions of incompetent and corrupt politicians.
Siemens already had to go into significant debt to acquire Gamesa. And now it has forced it into additional over-indebtedness due to excess growth. The increase in interest rates is not that strong. It is therefore a medium-term management problem of the matrix, Siemens. In fact, Gamesa's management of the orders was quite correct, but Siemens has tried to become the world leader in renewable energy and has erred on the side of overconfidence. Obviously, it is not up to the German State to solve problems of responsibility of the Directorate. It is a public limited company and a problem for its shareholders and management. Abengoa, who was the world leader in solar energy, has had to resort to a drastic suspension of payments and forceful asset sales when financial entities did not cover the refinancing of the debt.
Siemens ya se tuvo que endeudar notablemente para adquirir Gamesa. Y ahora ha obligado a ésta a un sobreendeudamiento añadido por exceso de crecimiento. El incremento de los tipos de interés no es tan fuerte. Es por tanto un problema de gestión a medio plazo de la matriz. De hecho, la gestión de Gamesa respecto a los pedidos fue bastante correcta pero Siemens ha intentado convertirse en el líder mundial en energías renovables y ha pecado de exceso de confianza. Obviamente, no le corresponde al Estado Alemán solucionar problemas de responsabilidad de la Dirección. Se trata de una sociedad anónima y un problema de su accionistas y la gestión. Abengoa, quien fuera líder mundial en energía solar ha tenido que recurrir a una suspensión de pagos drástica y contundentes ventas de activos cuando las entidades financieras no cubrieron la refinanciación de la deuda.
As long as we have billions to support the local car industry and for subsidies for foreign chip manufacturers…IFO really does not like renewable energies.
Wind power plants are quite important for the energy transition. There are doubts that everything here is above board. Imbalances can be predicted quite accurately.
Your advisor is short sighted. The German government ought to issue a loan to Siemens Energy at a reduced cost (say 3% below what the banks are charging Siemens Energy) so that the workers have jobs and the new turbines are installed and are creating more green energy. The Banks are price gouging their customers and The Earth does not have time for late 20th century ecconomic politics.
@@bidzej86 You want to be the reason why all those Seimens Energy employees are on the street in winter? The government could loan them enough to keep the employees working through march of 2024, and not have the German economy bottom out right before the coldest part of the year when people outside die of hypothermia!
@@catherineleslie-faye4302 your idea of laws and situation in Germany seems to be very incorrect. Noone is going to end up on the street, even if the company would be closed tomorrow. BTW, nice try to play on emotions and use them as an argument in a discussion.
@@bidzej86 You had better hopw that I'm wrong about what I see if Seimens Energy goes down. Corporate investors are already saying that German companies are across the board working on shakey foundations at best. The German economy is in deep trouble... if you can't see that, well, it isn't my problem is it?
this guy is a tool. Making sure that Siemens can deliver as many turbines as quickly as possible sounds like a pretty good investment for Germany. Wind and solar generated 60% of our electricity in 2022 here in Denmark, in the first half of 2023 it was 67%. And it is the cheapest source of electricity by far, so get those wind turbines installed, Germany...
That's nice, but first 🇩🇰 has a better location for exploiting wind energy than Germany, and second German energy consumption is about 500TWh instead of Denmark 33TWh... German industry creates world-class products but in exchange consumes a lot of electricity... They truly shot themselves in the foot when they axed nuclear... They are truly "leading" green transition with brown coal... And I agree with the guest that governments shouldn't bail out badly run companies. They should instead focus on creating better business enviroment, because the current one only worked due to cheap energy and qualified workforce, which made inefficient state bureaucracy bearable...
@@rastislavsmolek8140 Germany and Denmark consumes a similar amount of electricity per capita. And the windturbines in Germany are working just fine, they just need more. I would agree about letting companies fail under normal circumstances, and it would be great for the Danish company Vestas if Siemens went under. But right now, Europe needs as many wind turbines as possible.
@@cinpeace353 no i got that. But Siemens is the second largest producer of wind turbines in the world, it is important for Europe that those problems are sorted as fast as possible.
I agree with the general problem of sozializing risks but I think this case is an exception. Germany is performing a transformation of it's economy. I think it's quite possible that the driver of future GDP will be renewable technology. But the transition should be accelerated as much as possible because it's a unpleasant time and because speed will decide about key players and the dominant design of future technologies. Besides, the hole sector of wind turbine production has capacity problems and can not meet the demand. Therefore, I think the German government is doing the right thing.
FromWC USA, Now with Winter coming on wouldn’t it be great to have all of those Nuclear generators still be going full bore! Isn’t it interesting how a leader’s quick decision can adversely affect a countries energy future for decades!.
@@cinpeace353 yes, that's what collateral is for. System has worked 100s of years, why not now? Why should the tax payers lend money to companies, that's the banks job and reason for being.
That’s Chinese cheap quality and a lot more waste of these already our globe has to deal with Some of these wind turbines are only lasting less than a year old Investors Beware 🧐
@@SeawithinyouThere are 15 countries in the world making wind turbines. China is the leader of the industry. The company having flaws in their product is a Germany company. Forget what you heard from your channels, start look around the real world. 😅
226 all of the elders and all of the yet to be impregnated and everyone in the middle we need food water healthcare education travel and freedom from malicious undue prosecution for extortion that's why the community guidelines don't like spamming or explaining the same thing again and again which is basically PTSD so thank you for your help with getting the new protection and advocacy units up and running
not sure what i am missing here. he said loan so siemens energy will have to pay interest to the government which is fine right. i mean government is getting the profit even if the management fails again. why people are thinking that their profits will be privatised where even the profits is taxed by the government. including the pay raise that the management will get.
126 yeah I don't really understand how we could even have private properties on international water because all of the air and land is connected so I was like man we have to fix this problem with the conflict of interest in language because of course we have our own rooms and the kids were supposed to have their own rooms by the time they were seven if they are different genders but in the original times you had a teepee
640 my brother has needed me by his side every millisecond I didn't even usually go out of the line of vision in till he was getting all the way asleep in the OR
Germany is desperate, the end of their industrial might is very near, and they are seeking a solution. The writing is already on the wall though, and the economy will need to adjust accordingly. Bailing out companies and taking on their risk is not the solution they need.
He's right in the wrong way. The government should back the industry with investment, but the profits must be socialised not privatised. Siemens should become an efficient State Corporation. Privately run, but state owned, with the profits returning to the government or re-invested in new technology and job creation.
You're wrong. Government should _never_ invest in a company. Government should create a baseline for a business in order for them to work properly. This is mismanagement by [insert any large firm in germany] - everything was done right by the federal government. Before any money goes from state to private business, the private business must guarantee 100% steady employment and unimplicable 0% raise / bonus for the management over a minimum of 2 years or longer, if the loan runtime is longer. EVERYBODY knows what happens when the state gives money to a private business. The management side takes 92% of it and runs, leaving dust and rubble and unemployment.
