The crisis in the European car industry has reached a tipping point, and the responsible factors in Brussels have finally understood that the situation on the Old Continent is far from rosy. Members of the European Parliament, who until recently declared absolute confidence in the sustainability of the sector, are now forced to make worrying assessments.
The Vice-President of the European Commission, Stephane Séjournais, sent a clear signal, officially declaring that the automotive industry is facing a direct threat to its survival, putting the livelihoods of millions of families in question.
Séjournais detailed the main reasons for this decline, among which the lag in innovation, the geopolitical fragility of supply chains and trade barriers stand out. Serious criticism was also directed at Beijing. Chinese companies are accused of systematically overproducing electric vehicles, backed by state subsidies of around 10,000 euros per car - a practice that floods the market with cheap models and squeezes out traditional players.
However, politicians in Brussels also admit their own shortcomings, while local brands are losing ground on their home turf. Currently, Chinese vehicles already account for 15% of electric vehicle sales in Europe. An analysis by Boston Consulting reveals a drastic imbalance: the production capacity of European plants exceeds demand by as much as 5 million vehicles per year. This represents excess potential, equivalent to the work of around 35 full-fledged factories.
The picture on the labor market is becoming increasingly bleak. More than 200,000 employees have already lost their jobs, and leading German companies are preparing new waves of personnel optimization. The tension is palpable, with an emblematic example being the situational crisis at the Audi plant in Brussels, where workers were notified of their dismissal by letter without being given access to their workplaces.
In search of a way out of the impasse, unconventional ideas are also being put forward. The president of the VDA (Association of the German Automotive Industry) Hildegard Müller has launched the concept of transferring part of the production capacity to foreign investors in order to save at least some of the jobs.
A rare consensus has emerged in the European Parliament on the scale of the crisis. Massimiliano Salini of the European People's Party pointed out that the share of vehicles sold on the continent but assembled outside it could exceed 64%. At the same time, Mohamed Shahim of the Socialists and Democrats group predicted that by 2035, electric models will occupy half of the total market. The big question is no longer whether this technological change will happen, but whether investments and jobs will remain in Europe or move permanently to China.
The debates about the roots of the problem continue to divide institutions. On the one hand, excessive regulatory requirements from Brussels are pointed out, and on the other - the misjudgments of corporate management, which allowed electrification to slow down. Martin Shirdevan of the Left Party emphasizes the fact that while companies are closing their doors, the leading factors in the sector continue to receive millions in remuneration.