How serious are Europe's car industry problems? | Inside Story

France wants to stall European Union plans to fine carmakers who fail to make enough electric vehicles.
Europe plans to switch to EVs by 2035, but its huge automotive industry is struggling with the change.
So, why is it in trouble - and why are politicians so worried?

Presenter: Mohammed Jamjoom

Guests:

Ben Aris - Founder and Editor-in-Chief of bne IntelliNews, a business media company focusing on global emerging markets.

Ferdinand Dudenhoffer - Director at the Center for Automotive Research in Bochum, Germany.

Nick Gibbs - Correspondent for Automotive News Europe - the continent's leading automotive business publication.

#Europe #EU #EuropeanUnion #AutomotiveIndustry #EuropeanCarIndustry #EVTransition #AutoIndustryChallenges #FranceAutoPolicy #EU2035EVDeadline #AutomotiveFuture #ElectricVehicleMandates #CarIndustryStruggle #EuropeanManufacturing #AutoSectorConcerns

[Patricia-swek]

Nobody can afford to buy European electric cars and they’re not as good as Chinese

[pacoruiz]

Too late and a dollar short. Our hubris is killing us Europeans. The Chinese have the know-how, the technology, the workforce, the raw materials, the logistics, etc. And instead, we choose to impose tariffs. Unbelievable. We need to get rid of these useless politicians asap.

[thelammas]

The ultimate outcome of tariffs is that you end up sharing the local market with importers and you export nothing.

Imported cars become more expensive due to tariffs but your local manufacturers have no incentive to be more efficient and therefore match import prices.

You have no chance in export markets. Your local cars are too expensive and then retaliatory tariffs get slapped on them.

[listerine-prlt]

I don't think The Europe car industry is a serious thing at all, it is more of a joke.

[alimtraveling]

European electric cars are of average quality but expensive. Here comes a Chinese electric car with good quality & cheap prices. Of course consumers choose Chinese electric cars. The arrogance of all European electric cars & TESLA is now being replaced by Chinese electric cars, maintain your arrogance in Europe & the United States, and your business will go bankrupt.

[junkeatng]

As long as EU dances to Uncle Sam's tune, it is on track to decline like Uncle Sam.

[alimtraveling]

The glory of you Europe, especially England _ France _ Germany _ Italy and others throughout Europe has ended, now is the time for Asian countries to replace the glory of Europe.

[amunra]

This is what happens when the EU follows US policy blindly

[theinvestmentcorner]

Tariff increase prices for your own citizens, If the government is collecting your taxes and can't subsidized its county's critical industries so its citizens can have lower prices and a better standard of living, what the purpose of the government.

[beatonthedonis]

The French carmakers will be ok because they are concentrating on small, stylish and affordable electric cars that will sell by the bucketload. The Germans on the other hand made their profits from selling luxury monsters that don't lend themselves to electrification.

[SadaK-trdm]

US and UK are declining. Colonial rule doesn’t last long.

[oceanwave]

If watching the news, we can realize that a perfect storm is coming to Europe, especially Germany. Just to name a few: aging population, rise of far right, high energy cost, immigration issue (parallel societies, illegal immigration), less digitalization, heavy regulation, bureaucratic (EU), chaotic politics (Ampel party in Germany, who celebrates 3 different events separately by Chancellor, Vice-Chancellor, Finance Minister), losing more and more on frontier tech (Solar Panel, Wind, 5G, AI, Space exploration...). Yes, EU is getting their house in order, but as if the whole world would patiently wait for them to finish?

[nathanyahoo-xn]

If EU governments go ahead and subsidize European automakers like they accuse China of, they not only eliminate the need for tariffs but also provide a badly needed lifeline to the automotive sector.

[nd_ludd]

The tech is just not there to make it viable. Distance travel will be hard, goods movement impossible.

[aeroline]

When Chinese join WTO many EU carmakers jump in and built factory by joint venture with Chinese firm to sell ICE cars. EU carmakers earn hundred of billions dollar over the years. Chinese carmakers until today still not able to build ICE car as good as EU car brands. But when the world talk about green and environment friendly vehicles Chinese gov acts rapidly to urge their own local carmakers to switch to concentrate to electric vehicle, meanwhile Toyota is heading for hydrogen which is considered failure. EV idea to be commercial from Tesla and this embraced greatly by EU but end up Chinese gov act fast on it. But when the late comers Chinese brands raise up the EU notice they lack behind, and they launched protectionism by impose tariff on Chinese EV with a stupid excuse that Chinese EVs are heavily subsidized from Chinese gov. Isn't that sound good if Chinese gov using their own citizens tax to fund the EV and this sell to EU citizens. EU citizens are getting free funding from Chinese gov.

[sonyjoseph]

i hear some of these jazzy Chinese Ev.. have cool interiors and some come w/ cool intergraded kareokee system

[anesumuchena]

The EU should also focus on building infrastructure that will 'fix' the pain point of owning an electric car, once there are enough charging point like filling stations, the market would have an adjusted demand, making the switch to electric more plausible. Then what's left is sorting the high prices - taxes on new sales/ all sales -, and innovation will bring down charging speeds somehow too. Simply put it, China is not the only problem, people are just buying them cause they are cheaper, but you are ignoring people who aren't even buying those Chinese cars because of all the inconveniences around EVs, make the environment (market) ready for EVs.

[DLAM]

EU itself is a big mistake! Every country in the EU has its own interest and therefore each individual country should make its own decision and policy to protect its interest!

[RAHellemans]

Your expert who refers to the Smart from Mercedes from China forgot that Mercedes sold Smart some 10(+/-)years ago is no expert. Our EU automotive industry has "Only" 3 major obsticals:
1) Battery availability at competitive prices (under €50/kWh and sinking). The lack of progress of NothVolt and others to be competitive to imported Chinese batteries is concerning.
2) Computer controlled car architecture designed cars: EU carmakers are short off the skills/management knowhow to run software projects.
3) With an EV care end of line cost of -20% car makers can only survive by increasing their added value: in house drive motor manufacture, sold their folded body parts, make their seats etc. and finally sell their cars to the client.
Yes a fundamental change in the automotive industry is happening and this is just the beginning.😀

[pedrocoutinho]

Unbelievable critics from Bochum, Germany. Simple fact is problems are ours Europeans and profits are single handed country. The true fabric of European Union means exactly that, Union at all regards, however countries single hand have made their policies forward not truly tackling to create a competitive European Union and make all countries competitive so all can compete in innovation and have true consumption power. The reality is the opposite and fundamental changes are here, at the door step.