Many of these firms are known throughout the world and have branches or research facilities overseas. They include the carmakers Volkswagen, BMW and Daimler-Benz, the chemical corporations Hoechst, Bayer and BASF, the Ruhrkohle AG, the electrical equipment manufacturer Siemens, the energy groups VEBA and RWE, and the Bosch Group. Nearly all of them are stock corporations. They are extremely important for a wide variety of small and medium-sized suppliers.

After World War II, industry played a crucial part in Germany’s economic recovery. A decisive factor in this process was the transition to a market economy in the year 1948. One of the basic principles of the social market economy is entrepreneurial responsibility. The entrepreneur must himself see to his company’s growth and ensure that it can adapt to changing circumstances. Government economic policy is mainly confined to creating favorable conditions for business and industry. In the Federal Government’s view, competition is the best way to keep German industry technologically and structurally competitive on world markets. It ensures the largest possible number of small and medium-sized firms. The Federal Government therefore aims to improve conditions for the smaller industries and facilitate the establishment of new firms. The following is an outline of the main branches of German industry.