For decades, Germany has been known as the king of luxury cars.

The soul of BMW, where will you find it?

At Mercedes-Benz, we've always been a company.

It's a funny thing about a Porsche.

There's the moment you know.

This is Audi.

These luxury cars are at the moment you know. This is Audi.

These luxury cars are at the heart of Germany's economy, which is the third largest in the world.

Over decades, Germany developed an economic model based on manufacturing and exporting products like these, and it turned the country into a global powerhouse. But that model, which has been so effective for years, is on the verge of falling apart.

Our colleague Tom Fairless covers the German economy.

The business model that Germany has used to get rich since World War II, it was based on exporting to the world,

and that model has broken down.

Since 2018, there's really been a steady downward trend in manufacturing.

And the economy now, on the back of that,

has contracted for two years in a row.

And no one really seems to know what to do next.

Unless there's a turnaround, the fallout will reach far beyond the country's borders.

It's central to Europe's economy and especially to Europe's big manufacturing sector. And it's deeply intertwined with other countries like Italy

and Eastern European countries like the Czech Republic.

So if Germany sneezes, Europe catches a cold.

Welcome to The Journal, our show about money, business, and power.

I'm Jessica Mendoza.

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