LAS VEGAS — Stellantis CEO Carlos Tavares sees the European auto business at a crossroads in competitors with its Chinese rivals.
If politicians in Europe don’t discover a solution to the push into Europe by Chinese automakers, there will likely be a “terrible fight,” Tavares advised Automobilwoche on the sidelines of CES 2023 in Las Vegas.
Europe’s auto business may very well be compelled to massively scale back its manufacturing capability within the face of rising competitors from China, Tavares mentioned.
Chinese automakers are increasing in Europe with aggressive and aggressively priced autos, Tavares added.
“The price difference between European and Chinese vehicles is significant. If nothing is changed in the current situation, European customers from the middle class will increasingly turn to Chinese models. The purchasing power of many people in Europe is decreasing noticeably.”
Tavares feedback echo these of Forvia CEO Patrick Koller, who mentioned in Las Vegas that European automakers should develop inexpensive small battery-electric autos for city use.
Europe’s emissions regulatory regime will not be serving to the area’s automakers, Tavares mentioned.
“Regulation in Europe ensures that electric cars built in Europe are about 40 percent more expensive than comparable vehicles made in China,” he mentioned.
If the European Union doesn’t change the present state of affairs, the area’s auto business will undergo the identical destiny because the European photo voltaic panel business, Tavares warned. “I think we’ve seen this movie before. It’s a very bleak scenario. But it doesn’t have to go that way.”
SAIC’s MG, BYD, Geely’s Zeekr and Nio are amongst Chinese automakers focusing on European shoppers with their electrical automobiles.
‘Unpopular selections’
There are two paths the Europeans might take, Tavares added: “If you keep the European market open, then we have no choice: we have to fight the Chinese directly. And that applies to the entire automotive value chain.”
The penalties would then be vital, he mentioned. “That would inevitably lead to unpopular decisions.”
Capacities must be minimize and crops must be relocated to extra favorable areas.
Another choice, he mentioned, is to “re-industrialize” Europe, to convey again misplaced industries and manufacturing chains.
“If you want that, however, there is still a lot to do in the EU, then you would need a different trade policy.”
German business particularly wouldn’t be passionate about such a commerce coverage setting limits on China, he mentioned, as a result of it will massively have an effect on European actions in China.
“Ultimately, this challenge is akin to squaring the circle. In the current context, if nothing is done (in the European Union), there will be a terrible fight,” Tavares mentioned.
Source: europe.autonews.com
