A research paper that examined market changes through the lens of the automotive industry in both Germany and Italy. The Italian and German auto industries have been the primary economic drivers in their respective countries at different times. They both experienced pressures from an overall slump in the European market that was magnified by the increased competition imposed by the new EU Block Exemption regulations in 2005.
The study concluded that while technological advances in diesel-fueled engines, aluminum and carbon-fiber manufacturing continued to mitigate high oil prices with fuel-efficiency and price-savings, this was offset by low domestic demand. Both Italy and Germany were forced to pursue foreign markets to boost consumer sales and recruit engineering talent.