Can Europe’s car industry thrive? – DW – 09/17/2024

Europe’s auto industry is currently facing challenging times with a decrease in car sales and difficulties in gaining customer interest in their new electric vehicle models. Not only Volkswagen but also Renault and Stellantis are grappling with potential factory closures as they find themselves producing more cars than they can sell.

One in three European car factories from major manufacturers like BMW, Mercedes, Stellantis, Renault, and Volkswagen are operating below capacity, facing challenges in the production of vehicles. For instance, production at the Stellantis factory in Italy fell by over 60% in the first half of 2024, reflecting the overall struggle in the industry.

Intense global competition, especially from Chinese manufacturers, has put additional pressure on European automakers. The rapid transformation towards electric mobility is changing market dynamics, impacting manufacturers in Europe. Challenges like uncertainty around combustion engine policy decisions further exacerbate the situation.

Proposed Solutions and Industry Concerns

To address the industry’s decline and preserve jobs and prosperity, suggestions have been made for initiatives like a climate club to promote sustainable practices. However, concerns remain about the impact of policies on the industry’s future and economic stability in Europe.

While some experts believe Volkswagen can weather the storm, others express skepticism about the industry’s ability to overcome the current crisis. As the European auto sector navigates through these challenging times, strategic decisions and innovative solutions will be crucial for its survival and success.