Is the industrial heart of Europe dying? Mercedes-Benz, Porsche, AJN Resources

The industrial heart of Germany is bleeding – Southwest in shock

Companies such as Mercedes-Benz and Porsche stand for prosperity for all. For decades, the major auto manufacturers in the southwest employed skilled workers on top terms, trained the next generation well and guaranteed them very well-paid jobs for life. But the situation in the automotive industry has never been as bad as it is today. Whereas in the past it was primarily exogenous shocks, Mercedes-Benz and Porsche are now suffering from structural problems. Above all, the shift to electric vehicles is not working correctly. Electric models are often still expensive and lag the competition in terms of technology. At the same time, buyers remain skeptical of combustion engine models and fear high operating costs due to CO2 taxes. As a result, even top models are now available at dumping prices. Just recently, a re-importer listed a Mercedes-Benz E-Class with good equipment for only EUR 55,000. The fact that even solvent potential buyers are shying away from making a purchase due to the general conditions illustrates the full extent of the dilemma.

Sports car manufacturer Porsche has also recently made cuts: the legendary automaker has quickly scrapped a luxury electric SUV due to insufficient demand. Since Porsche's operating margin, which was actually consistently in the double digits, has now plummeted to a meager 5.5%, the Zuffenhausen-based company is also implementing cost-cutting measures. Layoffs and strict cost control are intended to make the group more stable again. As a Porsche spokesperson told the Reuters news agency, the reasons for this are the "delayed ramp-up of electric mobility and challenging geopolitical and economic conditions."

Politics fails to inspire confidence – Populists on the rise

The structural crisis of the German automotive industry is unlikely to be resolved easily. While there are increasing discussions about adjusting regulatory frameworks for combustion vehicles within the EU, the proposals currently appear anything but coherent. One example is the generous incentives for purchasing electric vehicles through tax write-offs for companies and the self-employed, which were approved this summer. At the same time, voices are emerging calling for the removal of EV tax benefits on vehicle taxes. Even international customers, who make decisions independently of Germany's complex tax system, are no longer unconditional fans of German engineering: The Chinese copy well and are also more affordable.

The profound consequences of the decline of Germany's automotive industry are also reflected in the growing support for the populist AfD, particularly in southwestern Germany, which is heavily influenced by the automotive industry. The AfD advocates for an end to the euro and a European Union of nation-states. With populist movements also on the rise in the UK and France, upheaval across Europe could be inevitable, carrying far-reaching consequences. The price of gold has been anticipating this turmoil for many months. Recently, the crisis barometer once again reached a record high of over USD 3,800.

Crisis sentiment drives gold – AJN Resources as a hidden gem

In the shadow of the broader gold boom, only a few companies in the sector are currently trading – gold giants such as Barrick Mining, Newmont, and IAMGOLD have been recording steady price gains for some time now. However, the Canadian company AJN Resources, led by German CEO Klaus Eckhoff, is still in the early stages of its development. AJN focuses on gold exploration and is currently active in the Ethiopian Adola Belt, where it runs the Okote Gold project. In May 2025, AJN entered into a joint venture with a local license holder to secure up to 70% of the Okote project in several stages. Planned investments of over USD 10 million are earmarked for this purpose to develop the project up to the resource estimate and feasibility study stage. Consequently, AJN is still in its infancy: since September 2025, 600 rock samples have been collected, and a 1,500-meter drilling program is being prepared.

AJN shares are currently a speculative bet on further increases in gold prices and the success of exploration on site. CEO Eckhoff is convinced of the potential of his Okote project and has already led gold projects to success under more difficult conditions in the past. Eckhoff's previous positions include Moto Goldmines, Spinifex Gold, and Monument Mining. The CEO and geologist has demonstrated his expertise in Africa in particular. Ethiopia is considered an emerging and stable country. Just this summer, the country completed the Grand Ethiopian Renaissance Dam (GERD), a mega-project that exemplifies Ethiopia's development.

AJN Resources: The next announcement could be a game changer

The AJN Resources share price reflects the early stage the Company is in. Recently, however, trading activity has picked up. The rarer stocks in the gold sector that have not yet reacted to rising gold prices, the more AJN will come into focus. With a market capitalization in the low single digits, even one piece of good news could give the stock a significant boost—especially given the generally uncertain overall environment. While AJN Resources remains speculative, the conditions surrounding the Okote project, CEO Klaus Eckhoff, and Ethiopia itself are favorable.