Germany Inc. as the last hope? Volkswagen, Bayer, Globex Mining

Germany Inc.: A proven concept for prosperity for all

Little remains of the once proud Germany Inc. Between the 1970s and 1990s, German banks pulled the strings together with industry. There were cross-shareholdings between companies, and people from different sectors met on supervisory boards. In 1988, representatives of Deutsche Bank alone sat on 400 supervisory boards. Alongside Alfred Herrhausen, Hermann Josef Abs was particularly prominent in this context, serving on over twenty supervisory boards. Abs was even responsible for introducing an upper limit on mandates. Although Germany Inc. had to live with accusations of collusion even back then, this form of cooperation ensured long-term strategies and shielded German industry from foreign influence.

Even though the former Germany Inc. has not existed since the beginning of globalization and the focus on shareholder value in the late 1990s, the question must be asked whether closer cooperation between German companies - possibly under political leadership - would not be appropriate again at this point. The German automotive industry is struggling with dwindling margins and declining market share in Asia. The energy transition is necessitating a profound transformation. The security transition requires investment and the repurposing of former industrial plants. Skilled workers are currently tied to ailing industries and would be more productive elsewhere.

Supply of raw materials critical for Germany

While companies like Volkswagen are bucking the trend and adopting the "China speed" they acquired in the Far East to develop new models and strategies, companies are still largely fighting their battles alone. Mercedes-Benz, BMW, Porsche, and Volkswagen remain more rivals than companions in adversity. Shareholders are now also being called upon to resolve the crisis at Bayer - which is still suffering from the overpriced Monsanto takeover and the glyphosate scandal - and to inject new capital. Given the challenges ahead, the future German government's plans for lower energy costs should only be seen as a starting point. Further steps are necessary. However, a form of state capitalism in which the federal government protects markets and creates reliable framework conditions for entire supply chains is still a long way off.

For many years, one of the weak points of German industry has been the supply of raw materials. Since metal mining in Europe is challenging due to strict regulations and comprehensive protection of individual rights, German companies must import raw materials. However, since Donald Trump took office, the world has been divided into several camps – and Europe appears to hold the worst cards in this competitive situation. This is reason enough to get involved in promising projects at an early stage.

Globex Mining bundles 250 raw material projects

The raw materials conglomerate Globex Mining is unique in its approach. Instead of carrying out extensive exploration work itself, the Company acquires promising properties, develops them to a certain point, and then grants options or license agreements to other companies. These partners then carry out further exploration or development, while Globex benefits from royalties and equity stakes. Globex Mining has around 250 projects in its portfolio, including properties with a focus on gold and silver, but also copper, zinc, nickel, cobalt, lithium, vanadium, and rare earths.

As Globex Mining invests exclusively in North America, the Company offers unparalleled access to mineral resources in secure jurisdictions. Synergies between companies in the Globex network are also conceivable – very much in the style of the former Germany Inc. Since last October, Globex Mining's share price has already gained around 50%. Stocks such as Volkswagen (+1.2%) and Bayer (-14.3%) cannot keep pace. Globex Mining shares are particularly interesting for investors who want to participate in promising raw material projects at an early stage and, at the same time, value a high degree of diversification.