Threat from China and US
The European car industry urgently needs support from Brussels, otherwise European car makers risk falling further behind their rivals in China and the United States. Credit insurer Allianz Trade made this plea in a report on the automotive industry.
According to experts from Allianz Trade, there are a lot of rules in Europe and there is little stimulating policy in return. “China’s disruptive role is crucial. Especially in the field of electric vehicles. They are miles ahead,” warns risk director in the Benelux Johan Geeroms. “Of course, everything is happening to catch up. But especially when it comes to the mass market of affordable mid-range cars, European manufacturers face a cutthroat competition.”
Geeroms predicts that those ‘left behind’ will have difficulty surviving. “We are already seeing increasing bankruptcies in the automotive sector. Not only are the margins at Chinese car manufacturers wider, they also have a much longer shelf life. That is not surprising; Chinese car manufacturers are pure state-owned companies. They force European manufacturers to make losses. production. You can never keep that up for long.”
The European automotive industry organization ACEA previously asked policymakers in Brussels for measures. ACEA chairman Luca de Meo, who is also Renault’s CEO, called in an open letter for more cooperation to compete with Chinese electric vehicle manufacturers.
According to Allianz Trade, stimulus measures in Europe are still too fragmented. According to Geeroms, much more support should be provided quickly to increase the number of charging stations and charging stations. About 60 percent of all European charging stations are now located in just three countries: the Netherlands, Germany and France. “In twenty EU countries, there is a lack of infrastructure incentives, such as subsidies on charging stations and charging stations. Very little is being done about the acceptance of electric cars. And what is happening in terms of incentives will be further reduced in 2024, such as in Germany and France where subsidies are budgetary constraints are being curbed.”
The car industry is important for the European economy. According to Allianz Trade, the sector, including suppliers, has almost 950,000 companies. The automotive industry therefore employs approximately 6.5 million people.
