Close menu




September 30th, 2025 | 07:25 CEST

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

  • Mining
  • Gold
  • PreciousMetals
  • Electromobility
Photo credits: pixabay.com

Uncertainty in Germany is greater than ever: Increasingly, companies in the automotive industry are cutting jobs. According to industry experts at EY, around 51,100 jobs were lost in the automotive industry within a year, corresponding to around 7% of all jobs. Companies in other sectors are also making cuts. Most recently, Lufthansa also laid off staff. This bad news is accompanied by a worrying mood of doom and gloom among the German population – especially in the traditionally wealthy southwest of the country. In this article, we explain how the industrial giants Porsche and Mercedes-Benz are faring and why more and more investors are turning their attention to gold stocks as a result.

time to read: 4 minutes | Author: Nico Popp
ISIN: MERCEDES-BENZ GROUP AG | DE0007100000 , PORSCHE AG | DE000PAG9113 , AJN RESOURCES INC. O.N. | CA00149L1058

Table of contents:


    Brodie Sutherland, CEO, Tocvan Ventures
    "[...] One focus will be on deposits near the surface. These would be good arguments for a quick production decision using the low-cost heap leaching method. [...]" Brodie Sutherland, CEO, Tocvan Ventures

    Full interview

     

    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.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author



    Related comments:

    Commented by Carsten Mainitz on October 21st, 2025 | 07:40 CEST

    Power Metallic Mines, RENK, BYD – An explosive combination! And the winners are?

    • Mining
    • Copper
    • Nickel
    • Gold
    • CriticalMetals
    • Electromobility
    • Defense

    Many topics are dominating the headlines. Peace in Gaza – and soon in Ukraine? This prospect initially put a significant damper on defense stocks – but only temporarily. After just a few days of correction, prices are already rising again. Gold at an all-time high is another major topic being covered in the media. Meanwhile, the geopolitical shifts we were reluctant to acknowledge for far too long are now catching up with many companies: China is cutting the world off from critical raw materials and rare earths. Read here to find out how investors can identify promising high-potential opportunities in this constellation.

    Read

    Commented by André Will-Laudien on October 21st, 2025 | 07:35 CEST

    Gold USD 4,300 and Silver USD 53 – Buying frenzy at Silver North, First Majestic, Nel ASA, and JinkoSolar

    • Mining
    • Silver
    • Gold
    • renewableenergies
    • Solar
    • Energy

    Silver has been shorted by many investment banks for several years because sufficient supply was available from Mexico and other producing countries. The tide has turned. Over the past 12 months, the precious metal has caught up with its big brother gold, gaining 54%. There are several reasons for the scarcity-driven rally: there are only around 250 active silver mines worldwide, compared to around 1,400 gold mines. In addition, silver has massively expanded its importance as an industrial metal: it is indispensable in high-tech, e-mobility, defense, and medical technology. As a result, less and less physical silver is available to investors, while inventories on the futures markets continue to decline. Now is the time to take a position in silver. Alongside industry giants such as First Majestic, Silver North is among the most promising beneficiaries of the new silver boom.

    Read

    Commented by Fabian Lorenz on October 21st, 2025 | 07:30 CEST

    Raw materials alert for defense and technology! Almonty, MP Materials, and Rheinmetall!

    • Mining
    • Tungsten
    • Defense
    • RareEarths
    • CriticalMetals

    Europe faces a growing raw materials challenge. Whether it is rare earths, tungsten, or other critical metals, these resources are essential not only for defense, but for countless industries, including AI. The FAZ recently spoke to Almonty CEO Lewis Black about this, dedicating almost an entire page to the issue. Conclusion: Europe must act. The US has long since taken decisive action, securing access for its industry by investing in raw materials companies such as MP Materials and Lithium Americas. Europe's hesitation could pose a risk for Rheinmetall, even if investors are currently overlooking it - especially as the Company is also expanding in the US. Hopefully, Defense Minister Pistorius will have this issue on his radar during his visit to Canada.

    Read