"The small town in southern Germany is home to 7700 people and the development center for luxury carmaker Porsche. The municipality benefited from the company's billion-dollar profits via trade taxes, which flowed into its budget. In 2009, Weissach collected 20,000 ($23,000) in taxes per inhabitant. "Thanks to Porsche, in Weissach we have the highest per capita tax revenue in all of Germany," remarked then-mayor Ursula Kreutel gladly in 2011 at the opening of an extension of the Porsche facility."
"Germany's automotive industry is in the deepest crisis of its history. At Porsche alone, profits tumbled about 96% in 2025. Other industries are also struggling. The tax revenue the municipalities greatly relied on has dropped rapidly. Even once prosperous cities and towns can no longer cover their expenses. "The finances of the local authorities are in a dramatic free fall," said Ralph Spiegler, President of the German Association of Towns and Municipalities (DStGB) and himself mayor of Nieder-Olm in Rhineland-Palatinate."
Weissach was once Germany's richest local authority, powered by Porsche's trade-tax contributions that delivered extremely high per-capita revenues and municipal benefits. The municipality invested in cultural facilities, construction bonuses, and saved most revenues as a buffer. The automotive sector has entered a historic crisis, with Porsche profits plunging about 96% in 2025. Tax revenues for many municipalities have dropped rapidly, forcing previously prosperous towns to struggle to cover expenses. Local authorities carry substantial responsibilities for daily services, ranging from trash collection and water supply to schools and kindergartens, intensifying budget pressure amid rising social costs.
Read at www.dw.com
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