[Skybird]

The market for several models from German car makers is america, that is especially true for certain models by Mercedes, VW and Porsche. Move the production to where the customer is - saves shipping.

Also, we have seen not really a flood but a slowly but constantly growing number of companies relocating from Asia back to Germany, for wages in those countries are not as low anymore as they once have been (especially true for china), and once low production costs additionally got put into relation by worse education standards of the workers, resulting in declines in production quality, again this is especially true for China.

Regarding China, German manufacturers with knowledge on inventions in new machinery have learned the hard way that they first sell away their products, than their knowledge, and then do not sell products anymore, for the Chinese now produce them themselves - with the once German knowledge. Maybe you took note of the row there is that the Chinese are trying to get patents of Western and German machinery - for free, and no licensing fees anymore. Behind the official curtains, it is a pretty big issue in German-Chinese relations.

Sources for the above content: economic programs on TV, occasional random findings in German newspapers. i do not skim economic news systematically, it bores me.