Electric vehicle sales are falling in Germany and stagnant in France, due to changes in purchasing aid systems, added to cost increases and the Chinese advance. This puts companies in a critical state
“There is a lot of uncertainty in the sector facing 2025,” the CEO of the Renault Group had stated during that exhibition, Luca de Meo, who pointed out that his biggest concern is the new European emissions regulations that come into force next year with the threat of million-dollar fines for manufacturers who do not comply.
Change in the US political landscape
Analysts estimate that European automakers have a great chance of being affected by possible protectionist measures of the new president, donald trumpin the midst of a strong commitment, at least for now, to the electric car that the European Union has made.
The sector’s main industrial groups such as Volkswagen, Stellantis, Mercedes-Benz and BMW face prolonged pressure on their activity, plus the threat of heavy fines if they do not meet decarbonisation targets.
During his first term, Trump already showed himself to be a fervent supporter of the application of tariffs. At that time, several sectors – such as washing machines, solar panels and imports of steel and aluminum – suffered the consequences of this protectionist policy.
During the last election campaign he promised that, this time, he will be tougher and will seek to increase employment in the manufacturing sector with a more closed economy.
He talked about the possibility of adding a 10% tariff to all imports; Then he talked about 20%. Everything from China would be hit by a devastating 60% tariff.
In automotive matters, Trump has paid a lot of attention to China, but he has also called the EU a “mini China.” “They don’t buy our cars, they don’t buy our agricultural products. “They sell millions and millions of cars to the United States,” he said in a campaign speech, which was considered a declaration of war on European automakers.
China’s advance in Europe
On the other hand, Europe is suffering from the advance of Chinese brands and is in a difficult negotiation to apply tariffs to their vehicles.
Chinese automotive competition, which already has 2.6% of the European market (7.4% among electric vehicles), is seen not only as a danger, but as an opportunity.
“Our Chinese rivals produce their electric cars for a third less than us and control 80-90% of the key materials market,” he said. Carlos Tavares, CEO of Stellantis.
The situation is so delicate that the French president, Emmanuel Macron, joined the requests of the automotive sector for the European Union to provide “support and stability” at a time when the path towards the electrification of mobility is becoming complicated.
Source: Ambito
