It is becoming paramount for firms to understand how to strategize to maintain sustainable competitiveness in automotive industry. The aim of this paper is to understand what firms in German automobile industry must do to remain in business or even ahead in its domestic and international business arena over time. In doing so, Michael Porter’s model of competitive advantage was used to analyse home-built competitive advantage of the German automotive industry and its links to global competitiveness. The results point to the fact that there are links between the German automotive industry’s domestic and global competitiveness.