The European car business appears to be in a state of freefall, facing multiple converging challenges. One significant factor is the stringent regulatory environment, with Europe imposing some of the world's toughest emissions standards and ambitious targets for electric vehicle (EV) adoption. These regulations have increased manufacturing costs and forced a quicker transition to electric vehicles than market demand might naturally dictate, leading to significant financial strain on traditional automakers.
Additionally, there's intense competition from Chinese manufacturers, who benefit from lower production costs and government support, allowing them to capture more of the global market, including in Europe. The European Union's policies, aimed at reducing carbon emissions, inadvertently disadvantage local manufacturers by making their products less competitive on price while the infrastructure for electric vehicles lags behind the ambitions of the policy.
Rising energy costs, partly due to Europe's move away from traditional energy sources to more expensive renewables, have also hit the industry hard, affecting both production and consumer purchasing power. This is compounded by a slower-than-expected consumer uptake of electric vehicles, influenced by high prices and concerns over charging infrastructure and range anxiety.
The combination of these factors has led to plant closures, layoffs, and a sharp decline in profits for major European carmakers, precipitating what some call "Carmageddon" for the European automotive sector.
SADLY, they did this to themselves going too hard into EVs too quickly, with unattainable forecasts..